Boeing's Financial Turbulence Amid Strikes

Boeing launched a stock and depositary shares offering, aiming to stabilize its finances amid a strike and credit rating concerns. The month-long strike by its workers has significantly impacted production and financial performance, prompting Boeing to explore various financial strategies, including stock and debt offerings.

Boeing, the aerospace giant, has announced the launch of 90 million common shares and $5 billion in depositary shares. The move is a strategic attempt to fortify its finances amidst a prolonged workers' strike, which has severely impacted production and financial stability.

The strike, initiated by 33,000 unionized workers in September, has stalled the manufacturing of crucial models, including the 737 MAX, and is estimated to cost the company over $1 billion monthly. In response to mounting financial pressure, Boeing has also pursued a $10 billion credit agreement with banks.

Concerns have been raised by rating agencies, warning of potential downgrades if the strike continues to strain resources. Boeing, with $11.5 billion in debt maturing soon, must carefully navigate its financial obligations to maintain its investment-grade credit rating.

(With inputs from agencies.)