Moody’s places Boeing on review for downgrade after worker strike

Moody’s placed all of Boeing ratings on review for downgrade, including the Baa3 senior unsecured rating and P-3 commercial paper rating. “This follows this morning’s strike by the company’s aircraft mechanics and assemblers represented by The International Association of Machinists District 751. About 95% of the union membership voted to reject the tentative agreement and to strike. Aircraft production across the company’s Seattle, Washington area factories will cease until the parties agree to contract terms that the membership will ratify,” the agency said in a statement. It believes a prolonged strike “would fracture the recovery of the Commercial Airplanes business, which remains in its early stages.”