Cash-strapped Boeing can’t afford credit agencies to downgrade its debt to junk. As factory workers continue their crippling strike, which has now lasted over a month, the company is prepared to raise $35 billion in funds to ensure it can pay its bills. In a pair of Tuesday morning filings with the Securities and Exchange Commission, the company said it could issue $25 billion in shares or debt over the next three years and also revealed a new $10 billion credit agreement with the likes of Bank of America, Citibank, Goldman Sachs, and JPMorgan Chase.
Issuing new stock would be a blow to the company’s long-suffering shareholders, diluting the value of their holdings. A credit downgrade would likely be much worse for all parties, however, as it would significantly raise borrowing costs when the company is desperately trying to get on the road to recovery under new CEO Kelly Ortberg.
