Fitch Ratings says Boeing’s decision to suspend production of its 737 MAX airplane programme outline risks of the aerospace sector for airliner producers and their suppliers.
The exact credit impact will depend on the length of suspension and the timing of the 737 MAX’s return to service on potential regulatory changes.
Boeing’s 737 MAX and the A320neo from its main competitor Airbus are the largest commercial airplane programmes worldwide as it accounts for shares of the companies’ order books.
Difficulties with these flagship programmes may affect the manufacturers’ operations, financials and reputation.
The ratings agency affirms the company’s at ‘A’/F1/Negative on 17 December 2019 due to the production suspension announcement.
It says the MAX situation will present challenges throughout the aviation credit sector into 2021.