S&P places Boeing's rating on CreditWatch negative as 33,000 workers on strike

The manufacture of Boeing's best-selling aircraft has been halted due to the approximately 33,000 striking employees of the American planemaker. As a result, global ratings agency S&P said on Tuesday that it has downgraded Boeing's rating on CreditWatch.

The union, whose members have now been on strike for 26 days, is seeking a 40% pay rise over four years and the restoration of a defined-benefit pension that was taken away in the contract a decade ago.

The rating agency estimates that Boeing will incur a cash outflow of about US$10 billion in 2024 and will likely require incremental funding.

S&P's CreditWatch listing reflects the increased likelihood of a downgrade if the strike continues, increasing costs and delaying the company's recovery in aircraft production and cash flow generation.

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