Boeing Faces Financial Challenges Amid Ongoing Strike and CreditWatch Negative Status

Group 1 - Boeing is experiencing a downward trend, reaching new 23-month lows due to unfavorable developments, including a strike and failed negotiations with its machinists union [1] - The strike, which began last month after the union rejected a four-year contract, is expected to extend through 2024, impacting Boeing's operations and financial stability [1][2] - S&P has placed Boeing's ratings on CreditWatch Negative, projecting around $10 billion in cash outflow this year due to the strike, which necessitates securing funding to maintain cash balance and meet debt obligations [2] Group 2 - Boeing reported approximately $7.2 billion in net cash outflow by Q2, attributed to lower commercial deliveries and poor working capital timing, with total debt rising to $57.9 billion after issuing $10 billion in new debt [2] - The company is exploring ways to raise cash, potentially aiming to raise around $10 billion, with options including stock dilution, convertible bonds, or large stock sales, which could impact share price [2] - Boeing is facing numerous challenges, including manufacturing issues and failures in its Starliner program, alongside a nearly month-long strike and paused negotiations, leading to a looming cash shortfall [3]