Boeing Co. & Units Rtgs Afmed by S&P; Outlk Remains Neg.NEW YORK--(BUSINESS WIRE)--S&P's CreditWire 9/1/98--Standard & Poor's today affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. its ratings on Boeing Co. and related entities (see list below), following the firm's announcement that it will repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. up to 15 percent of its outstanding shares of common stock (worth about $4.5 billion at the current share price) over time, in line with the goal to enhance shareholder value. The outlook remains negative. While stock buybacks Stock buyback A corporation's purchase of its own outstanding stock, usually in order to raise the company's earnings per share. stock buyback See buyback. represent a shift in the company's historically conservative financial policy, they are expected to be funded primarily from internally generated cash flow and excess cash balances. Furthermore, share repurchases Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. are anticipated to be paced over the next several years to maintain financial flexibility. Ratings on Boeing are supported by the company's leading position within the commercial aircraft manufacturing industry, favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. long-term growth prospects for that business, a very strong position in defense and space, relatively low debt usage, sizablecash balances, and anticipated improvements in financial performance. Intensified in·ten·si·fy v. in·ten·si·fied, in·ten·si·fy·ing, in·ten·si·fies v.tr. 1. To make intense or more intense: efforts to reduce costs and increase efficiences, and a solid backlog should lead to better earnings and greater cash flow generation in the intermediate term. Those factors more than offset continuing financial and economic problems in Asia, an important market for commercial aircraft, and a stronger competitive position of rival Airbus Industrie G.I.E. OUTLOOK: NEGATIVE Ratings could be lowered if earnings and cash flow do not recover as expected from production problems of the past year, or if a combination of planned share repurchases, possible outlays Outlays Payments on obligations in the form of cash, checks, the issuance of bonds or notes, or the maturing of interest coupons. for new aircraft programs, and an eventual industry downturn erode Erode (ĕrōd`), city (1991 urban agglomeration pop. 361,755), Tamil Nadu state, S India, on the Kaveri River. The city is located in a cotton-growing region, and its industries include cotton ginning and the manufacture of transport equipment. Boeing's financial profile, Standard & Poor's said.--CreditWire
OUTSTANDING AFFIRMED RATINGS
Rating
Boeing Co.
Corporate credit rating AA
Short-term corporate credit rating A-1+
Senior unsecured debt AA
Boeing Capital Corp.
Counterparty credit rating AA-
Short-term counterparty credit rating A-1+
Senior unsecured debt AA-
Subordinated debt A+
Commercial paper A-1+
McDonnell Douglas Corp.
Corporate credit rating AA
Senior unsecured debt AA
CONTACT: Roman Szuper, 212/208-8856
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