Fair Credit

Credit agency Standard and Poor's announced today that it has lowered Boeing's credit rating from "A+" to "A" due to changes in Pentagon spending and weaker commercial air traffic.

"Boeing Co.'s defense business remains stable, but changes in defense-spending priorities could constrain the long-term growth and competitiveness of the unit," the S&P statement reads, adding:

"The downgrade reflects concerns about the possibility of further production cuts due to airline order deferrals and cancellations, risks related to the development of the midsize 787 jetliner, which is two years behind schedule, and the potential for higher customer financing needs," said Standard & Poor's credit analyst Christopher DeNicolo. "The long-term effect of changes in U.S. defense spending, and substantial pension liabilities were also factors," he continued.