Fitch Downgrades Boeing Credit Rating by Two Levels to 'BBB'

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee]International credit rating agency Fitch announced on the 25th (local time) that it downgraded the credit rating of the U.S. aircraft manufacturer Boeing from 'A-' to 'BBB' by two notches.

The rating outlook was also assessed as 'negative.'

The credit rating of Boeing Capital Corporation, Boeing's financial subsidiary, was also lowered by two notches to BBB.

Fitch explained that this rating adjustment reflects the impact Boeing is experiencing in the aviation market and management due to the spread of the novel coronavirus disease (COVID-19).

Meanwhile, credit rating agency Standard & Poor's (S&P) downgraded the credit rating of U.S. Delta Air Lines by two notches to 'BB' on the 24th, citing decreased demand due to COVID-19. This corresponds to a non-investment grade 'junk' rating.