This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Moody's: Prolonged 787 Review Is Credit Negative for Boeing

It could take "months and months" for the FAA to complete its 787 review and allow the airplane to fly again, former NTSB member John Goglia said in an interview Monday. "We just don't know enough," Goglia said. "We know that the battery overheated; it reaches a critical point and then it gets to 'thermal runaway.' That could be caused by a short circuit in the battery or by external factors. That's the problem, trying to identify the cause."

In his note, Solomon wrote: "This process will take more time, something that does not work in Boeing's favor. The longer it takes to identify the factors behind the battery failure and the systems designed to protect against fire, the longer it will take to implement satisfactory safeguards to prevent a recurrence."

Solomon called six months "an inflection point."

He would be troubled, he said, "once you get past six months of not having some resolution and not knowing it won't cause billions of dollars to fix." At that point, a perception of credit risk could lead to a negative outlook, rather than just a perception that a particular event is credit negative.

-- Written by Ted Reed in Charlotte, N.C.

>To contact the writer of this article, click here: Ted Reed
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
BA $134.01 -0.59%
AAPL $92.77 -2.20%
FB $116.55 -0.15%
GOOG $691.56 0.08%
TSLA $244.93 -1.10%


Chart of I:DJI
DOW 17,716.01 -114.75 -0.64%
S&P 500 2,064.79 -11.02 -0.53%
NASDAQ 4,778.5080 -26.7830 -0.56%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs