BRIEF-Fitch Sees Boeing's Operational Execution & Profitability Improvement To Drive Its Rating Over Next 2 Years

BY Reuters | CORPORATE | 03/11/25 03:01 PM EDT

March 11 (Reuters) - FITCH:

* FITCH: SEES BOEING'S OPERATIONAL EXECUTION, PROFITABILITY IMPROVEMENT, BALANCE SHEET MANAGEMENT AS MAIN DRIVERS FOR ITS RATING OVER NEXT 2 YEARS

* FITCH: BELIEVES BOEING'S INITIAL POST-STRIKE OPERATIONAL PROGRESS PAVES WAY TO PRODUCE 38 UNITS PER MONTH IN 3Q25

* FITCH - MORE IMMINENT CHALLENGE FACED BY BOEING'S DEFENSE, SPACE & SECURITY SEGMENT IS ITS LOSS-MAKING LEGACY CONTRACTS

* FITCH: BELIEVES BOEING MANAGEMENT WILL LIKELY MANAGE AND, IN SOME CASES, DIVEST NON-CORE COMPONENTS OF BDS PORTFOLIO OVER NEXT FEW YEARS

* FITCH: CONTINUES TO FORECAST BOEING'S FCF IN MID-SINGLE-DIGIT BILLIONS, GROSS DEBT BELOW $50 BILLION, AND EBITDA LEVERAGE UNDER 4X IN 2026

* FITCH ON BOEING: DOES NOT VIEW RISK OF RETALIATORY TARIFFS ON U.S.-MADE AIRCRAFT AS A SIGNIFICANT RATING DRIVER

* FITCH ON BOEING: LOSSES ARE LIKELY TO PERSIST UNTIL FIXED-PRICE DEVELOPMENT PROGRAMS, FIGHTER AND SATELLITE PROGRAMS CONCLUDE IN COMING YEARS Source text: Further company coverage:

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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