Georgia university leaders ask NCAA to ban transgender women from sports
Boeing weighs options for raising cash as ratings downgrade looms, sources say
Citi pushes back on New York lawsuit over fraud scams
As FEMA prepares for Hurricane Milton, it battles rumors surrounding Helene recovery
Tampa in path of hurricane for first time in a century
FBI arrests Afghan man who officials say planned Election Day attack in the US
Nobel Prize in physics spotlights key breakthroughs in AI revolution − making machines that learn
Lynx return to finals with 88-77 win over Sun in Game 5 behind Collier's 27 points, 11 rebounds
Phillies one loss from elimination after 7-2 NL Division Series loss to Mets
Riley Keough felt a duty to finish Lisa Marie Presley’s book on Elvis, grief, addiction and love
(Reuters) -Global ratings agency S&P said on Tuesday it had placed Boeing's rating on CreditWatch negative as about 33,000 of the U.S. planemaker's workers remain on strike, halting production of its best-selling jets.
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 ratings agency estimates that Boeing will incur a cash outflow of about $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.
Last month, all three major ratings agencies including S&P had warned that a prolonged strike at Boeing's factories in the U.S. West Coast may lead to a ratings downgrade, a headache for the planemaker that is saddled with massive debt.
The first labor strike at Boeing since 2008 coincides with a period of intense scrutiny of the company by U.S. regulators and airline customers after a mid-air incident in January when a door panel detached from a 737 MAX jet.
The company's finances are already groaning due to a $60 billion debt pile.
S&P said on Tuesday it does not expect the company to reach its goal of increasing the production of its best-seller 737 MAX to 38 planes a month by the end of the year.
It estimates the strike to cost Boeing more than $1 billion per month, despite the cost-saving measures the planemaker implemented in response to the production halt.
(Reporting by Shivansh Tiwary in Bengaluru; Editing by Devika Syamnath and Shailesh Kuber)
