Boeing to Launch New Bond Sale as Fitch Downgrades to Edge of Junk

Boeing (BA +0.4%) unveils a sale of new bonds to help repay $2.8B of debt, issuing unsecured notes in four parts, according to an SEC filing.

The longest portion of the offering, a 10-year security, may yield around 300 basis points over U.S. Treasuries, Bloomberg reports.

At virtually the same time this morning, Fitch Ratings cut Boeing’s credit rating a notch to BBB-, the lowest investment-grade rating, with a negative outlook.

It may take another two years until Boeing’s financial metrics are more consistent with a higher credit rating, Fitch says.