TEXT - Fitch says no impact to Boeing Capital after voluntary reporting suspension
Jan 23 - Fitch Ratings believes there is no impact to the outstanding ratings of Boeing Capital Corporation (BCC) following The Boeing Company's (BA) announcement that BCC intends to voluntarily suspend its separate U.S. Securities and Exchange Commission (SEC) reporting obligations. Fitch does not anticipate this change to affect the ratings of BA. For more information, please see Fitch's press release, 'Boeing's Guarantee of Boeing Capital Does Not Affect 'A/F1' Ratings,' dated Jan. 23, 2013, available at www.fitchratings.com. On Jan. 23, 2013, BCC filed to terminate its existing SEC debt registration statements. As a result, BCC's reporting requirements under the Securities and Exchange Act of 1934 will be suspended and BCC will no longer file certain documents, including reports on Forms 8-K, 10-K and 10-Q, after its upcoming Form 10-K filing with the SEC. Going forward, Fitch expects BCC will be reported publicly as a segment within BA's quarterly and annual consolidated financial statements, supplemented by additional financial information provided to Fitch on a private basis. The ratings of BCC are linked to those of its parent, reflecting Fitch's belief that the company is core to BA's overall franchise. In connection with this announcement, BA intends to terminate its existing support agreement with BCC and replace it with an unconditional guaranty. BA has unconditionally guaranteed the due and punctual payment and performance of all of BCC's outstanding publicly-issued debt obligations. The guaranty will remain in full force and effect until these debt obligations are paid in full. Consistent with Fitch's criteria, 'Rating FI Subsidiaries and Holding Companies', the unconditional guaranty reinforces the rating linkages between BCC and its parent due to Fitch's belief that this form of support is considered to be stronger than the current agreement being replaced, and therefore the termination of the support agreement does not adversely affect BCC's ratings. SENSITIVITY/RATING DRIVERS BCC's ratings and Outlook are linked to those of its parent. Positive and negative rating actions will be limited by Fitch's view of BA's credit profile. However, negative rating actions could also result from a change in the perceived relationship between BCC and BA, including the early termination of the parent guaranty prior to the repayment of BCC's outstanding publicly-issued debt. Fitch currently has the following ratings: Boeing Capital Corporation --Long-term Issuer Default Rating 'A'; --Short-term Issuer Default Rating 'F1'; --Commercial paper 'F1'; --Senior unsecured 'A'. The Rating Outlook is Stable.
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