Fitch: No Impact to Boeing Capital Following Voluntary Reporting Suspension

NEW YORK--()--Fitch Ratings believes there is no impact to the outstanding ratings of Boeing Capital Corporation (BCC) following The Boeing Company's (BA) announcement that BCC intends to voluntarily suspend its separate U.S. Securities and Exchange Commission (SEC) reporting obligations. Fitch does not anticipate this change to affect the ratings of BA. For more information, please see Fitch's press release, 'Boeing's Guarantee of Boeing Capital Does Not Affect 'A/F1' Ratings,' dated Jan. 23, 2013, available at www.fitchratings.com.

On Jan. 23, 2013, BCC filed to terminate its existing SEC debt registration statements. As a result, BCC's reporting requirements under the Securities and Exchange Act of 1934 will be suspended and BCC will no longer file certain documents, including reports on Forms 8-K, 10-K and 10-Q, after its upcoming Form 10-K filing with the SEC. Going forward, Fitch expects BCC will be reported publicly as a segment within BA's quarterly and annual consolidated financial statements, supplemented by additional financial information provided to Fitch on a private basis.

The ratings of BCC are linked to those of its parent, reflecting Fitch's belief that the company is core to BA's overall franchise. In connection with this announcement, BA intends to terminate its existing support agreement with BCC and replace it with an unconditional guaranty. BA has unconditionally guaranteed the due and punctual payment and performance of all of BCC's outstanding publicly-issued debt obligations. The guaranty will remain in full force and effect until these debt obligations are paid in full. Consistent with Fitch's criteria, 'Rating FI Subsidiaries and Holding Companies', the unconditional guaranty reinforces the rating linkages between BCC and its parent due to Fitch's belief that this form of support is considered to be stronger than the current agreement being replaced, and therefore the termination of the support agreement does not adversely affect BCC's ratings.

SENSITIVITY/RATING DRIVERS

BCC's ratings and Outlook are linked to those of its parent. Positive and negative rating actions will be limited by Fitch's view of BA's credit profile. However, negative rating actions could also result from a change in the perceived relationship between BCC and BA, including the early termination of the parent guaranty prior to the repayment of BCC's outstanding publicly-issued debt.

Fitch currently has the following ratings:

Boeing Capital Corporation
--Long-term Issuer Default Rating 'A';
--Short-term Issuer Default Rating 'F1';
--Commercial paper 'F1';
--Senior unsecured 'A'.

The Rating Outlook is Stable.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:
--'Global Financial Institutions Rating Criteria' (Aug. 15, 2012)
--'Finance and Leasing Companies Criteria' (Dec. 11, 2012)
--'Rating FI Subsidiaries and Holding Companies' (Aug. 10, 2012).

Applicable Criteria and Related Research:
Finance and Leasing Companies Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=696720
Global Financial Institutions Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=686181

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE.

Contacts

Fitch Ratings
Primary Analyst
Johann Juan, +1-312-368-3339
Director
Fitch, Inc.
70 West Madison Street
Chicago, IL 60602
or
Secondary Analyst
Katherine Hughes, +1-312-368-3123
Associate Director
or
Committee Chairperson
Meghan Neenan, CFA, +1-212-908-9121
Senior Director
or
Media Relations
Brian Bertsch, New York, +1 212-908-0549
brian.bertsch@fitchratings.com

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Contacts

Fitch Ratings
Primary Analyst
Johann Juan, +1-312-368-3339
Director
Fitch, Inc.
70 West Madison Street
Chicago, IL 60602
or
Secondary Analyst
Katherine Hughes, +1-312-368-3123
Associate Director
or
Committee Chairperson
Meghan Neenan, CFA, +1-212-908-9121
Senior Director
or
Media Relations
Brian Bertsch, New York, +1 212-908-0549
brian.bertsch@fitchratings.com