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)
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