That the things Boeing is doing that seem designed to help its stock price could instead end up hurting the company? ADAt Thursday afternoon’s price of about $128.65 as I write this, those shares were worth only about $23.7 billion. That’s because the securities, which carried the lowest investment-grade rating there is, have an unusual provision that will boost Boeing’s interest cost should its credit rating be downgraded further. ADIf Boeing’s rating falls a notch, it would cost Boeing an extra 0.25 percent of annual interest, or $62.5 million a year. I suspect that in the long run, we taxpayers will be better off than if we’d made a bailout loan deal with Boeing.

Source: Washington Post May 07, 2020 18:21 UTC