Boeing may raise $10 billion by borrowing money from the debt market

According to people familiar with the situation, American aircraft manufacturer Boeing went to the debt markets on Monday to seek $10 billion after using $3.93 billion in free cash in the first quarter due to a delay in production of its best-selling model.

Ratings agencies this week upgraded Boeing’s credit rating from «junk» to «junk,» as the company works to recover from the crisis that started in January when a panel on a relatively new 737 MAX 9 detached in midair.

Analysts and investors speculated that Boeing would look to the bond market to pay off its combined $12 billion in debt that has maturities in 2025 and 2026.

Boeing’s new senior unsecured notes were given ratings close to «junk» on Monday by credit rating agencies. Moody’s chose to rate it at Baa3, while S&P gave it a BBB-.

Moody’s says the rating is a reflection of Boeing’s strong business profile, which helps to offset the company’s poor performance in the commercial aircraft market, even if there are still unfavorable factors that might affect this division until 2026.

Boeing plans to utilize the proceeds from the bond sales to increase its liquidity in advance of the $4.3 billion in debt that it has due in 2025, according to a Monday report from S&P.