Any plans by the company to raise capital would likely be negotiated with the rating agencies, Carol Levenson, director of research at Gimme Credit, told IFR in emailed comments.
If Boeing wants to maintain its investment-grade status then the US aerospace giant may have to rule out visiting the corporate bond market to refinance billions of dollars of upcoming maturities.
Moody's said on Friday it could downgrade Boeing if the jetmaker has to borrow to help retire the roughly US$12bn of debt it has coming due through 2026.
That condition was part of a credit update on the company after Boeing machinists voted on Friday to strike and reject a labor deal with management. The recent labor conflict has upended the company's plans to increase jet production and restore cash flow.
A downgrade from the current Baa3 corporate rating from Moody's would put Boeing a step closer to the junk-credit status it has been trying to avoid. S&P and Fitch, which also responded to the machinist vote, both assign the company a BBB– rating. Boeing has a negative outlook from all three agencies.
Discouraged from issuing the kind of bonds that were in high demand when Boeing raised US$10bn
in May, the company is therefore expected to lean on other levers and financing tools to come up with the cash.
"Taking Boeing's IG commitment at face value, we conclude that a significant equity offering or asset sale commitment will be forthcoming at the company," said CreditSights analysts on Friday.
At a conference on Friday, CFO Brian West said the company would prioritize staying investment-grade when asked by an analyst on the prospect of Boeing issuing debt or equity by the end of the year.
Moody's estimated US$4bn of debt was due in 2025 and another US$8bn in 2026.