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Boeing (NYSE:BA) received a vote of confidence from Fitch Ratings on Monday, as the credit-rating firm revised its outlook on the aerospace giant to “stable” from “negative,” reflecting signs of recovery in production and financial flexibility.
Fitch affirmed its BBB- investment-grade credit rating for the U.S. planemaker, pointing to stronger free cash flow prospects and improved operational performance following recent challenges. The outlook upgrade offers some relief for Boeing, which had faced heightened scrutiny from credit agencies in the wake of last year’s labor disruptions.
The company has been working to stabilize operations under the leadership of CEO Kelly Ortberg, addressing both supply chain pressures and production shortfalls that impacted output of key aircraft models, including the 737 Max.
Boeing’s (NYSE:BA) financial position is also expected to strengthen, with Fitch projecting the company will reduce its gross debt below $50 billion in 2026. This improvement is anticipated through a combination of maturing debt repayments including nearly $8 billion in 2026, a ramp-up in aircraft production and the recent sale of Boeing’s Jeppesen navigation and flight services business.
Sustained operational progress, particularly in 737 Max production, should support free cash flow generation and keep leverage ratios aligned with BBB- thresholds, Fitch noted in its report.
The ratings agency said a clearer long-term strategy around capital allocation and continued momentum in Boeing’s (BA) operations could lay the groundwork for a possible rating upgrade within the next six to twelve months. Fitch also expects management to explore divesting non-core assets within the company’s defense business as part of broader restructuring efforts.
Boeing (BA) has faced intense pressure from both regulators and investors over the past year, particularly after a labor strike involving roughly 33,000 workers disrupted assembly lines for several of the company’s most profitable aircraft models. That strike, combined with supply chain bottlenecks, triggered concerns about cash burn and production timelines, leading major credit agencies to warn of potential downgrades.
S&P Global took Boeing (BA) off its CreditWatch negative list in April, citing improved production rates and signs of stabilizing financial performance.
Fitch’s latest report underscores cautious optimism that Boeing (BA) is regaining its footing, though the company’s ability to maintain production improvements and clarify its long-term financial roadmap will be critical to its credit standing going forward.