Fitch concerned by Boeing jet-production schedule

NEW YORK — Fitch Ratings said Thursday that Boeing Co.’s newest schedule for production of the fuel-efficient 787 jet is a negative factor for credit ratings.

Fitch said Boeing had doubled debt levels in the past six months and its credit measurements were weak for the company’s “A-plus” rating.

But Fitch didn’t cut the rating because of solid performance in the rest of Boeing’s business.

Chicago-based Boeing said Thursday that the lightweight 787 will be ready for its first test flight by the end of this year and the first delivery to a customer will be in the fourth quarter of next year, or more than two years behind the original timetable. The company expects to record a pretax charge of $2.5 billion.

Fitch said Boeing’s cash flow will be under pressure through next year as it meets higher development costs and builds up inventory for the 787. The agency said it’s possible that Boeing could have break-even or negative flow of cash from operations minus capital expenditures and dividends.

Fitch lowered its outlook on Boeing to “negative” from “stable” in April because of concern over the recession, pressure to control Pentagon spending and problems in the aircraft-finance market. Most of those problems have eased in the past five months except new delays in the 787 program, Fitch said.

Boeing’s ratings for issuer default, senior unsecured debt and bank facilities are rated “A-plus” by Fitch. The ratings cover $11.1 billion of debt.

Boeing shares rose 4 cents, or 8.4 percent, to $51.82, as investors seemed assured by a schedule update for the often-delayed 787.