S&P cuts Boeing credit ratings by one notch to A

NEW YORK, July 29 (Reuters) - Standard & Poor's on Wednesday cut its ratings for Boeing Co BA.N by one level citing weaker air traffic and recent losses within the industry.

S&P downgraded both Boeing and Boeing Capital Corp to A, the sixth highest rating, from A-plus, due to recent losses, reduced demand for jetliners and more delays in the company’s development of the new 787 jetliner, which is already two years behind schedule.

“The long-term effect of changes in U.S. defense spending, and substantial pension liabilities were also factors,” S&P said.

S&P said it holds a stable outlook for the company, which reflects S&P’s expectations of modestly improving credit protection measures in 2009, as the company recovers from a strike last year.

The rating agency affirmed the company’s short-term A-1 rating. (Reporting by Walden Siew; Editing by Diane Craft)