S&P Removes Boeing from CreditWatch Negative on Production Improvement

S&P Global Ratings has removed Boeing from its CreditWatch Negative list, citing improvements in aircraft production and reduced cash burn following a strike that halted output of its best-selling jets. The agency pointed to Boeing's substantial cash reserves and better-than-expected free cash flow usage in the first quarter as evidence of financial stabilization. Analysts noted Boeing's efforts to ramp up production of the 737 MAX and its capacity to absorb unexpected risks, including those from international trade tensions. However, S&P maintained a negative outlook on Boeing's rating, warning that a slower recovery in production or deliveries could still lead to a future downgrade. The decision spares Boeing from a potential downgrade to junk status, which would have increased its borrowing costs given its significant debt load. Despite ongoing challenges, retail investor sentiment remains bullish on Boeing's long-term prospects.