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Boeing corp stock fell a further 25% after downgrades from S&P and Firch as the Coronavirus paralysed air travel. $BA had untill last month largely dodged a bullet with it's Boeing 737 Max fallout.

Boeing 737 Max Crash

Rescuers Comb the Wreckage of a Boeing 737 Max Crash, Will the Market?

Boeing Corp which had already been under pressure as the airlines Collapse Accelerated, highlighted by Italy nationalizing Alitalia saw it's stock wrecked Monday. $BA tumbled nearly 25% on the ratings cuts after airlines scaled back flights amid countries locking down to prevent the spread of coronavirus

Market Summary > Boeing Co NYSE: BA

$129.61 −$40.54 (-23.83%) Closed: Mar 16,2020

Boeing Collapse stock

Major competitor Airbus (EADSY) fell 16% to a three-year low.

Market Summary > Airbus SE OTCMKTS: EADSY

18.46 USD −3.44 (15.71%) Closed: Mar 16, 2020

S&P Ratings Cut

S&P Ratings Cut S&P Ratings cut Boeing to BBB with negative watch. Cut f from A- Boeing at BBB with negative watch.

Fitch Ratings Cut

Fitch put the aerospace giant on credit watch negative Friday.

"These concurrent risks could influence the pace of the 737 Max delivery ramp-up after the grounding is lifted, which could slow the rate of debt reduction from peak levels," the Fitch report said,

On Jan. 17 Fitch downgraded Boeing's credit rating to A- from A on risks related to the 737 Max's return to service. Boeing reportedly plans to draw down the full amount of a $13.8 billion loan as it also preserves cash via cost controls.

Moody's Ratings Cut In January

Moody's downgraded Boeing's senior unsecured debt to Baa1, still investment grade but just three notches above junk status, from A3 as the Boeing 737 Max's return to service will be "much costlier given significant negative free cash flow."

JP Morgan Downgrade BA

JPMorgan analysts downgraded $BA shares to neutral from overweight and slashed their price target to 210 from 370 as the coronavirus pushes back production estimates and brings the dividend into doubt. The Boeing 737 Max has been grounded since March 2019 following two deadly crashes. 

United Airlines (UAL) sees the Boeing 737 Max missing the entire summer. American Airlines (AAL) and Southwest (LUV) have removed the plane from their schedules until mid-August.

Major competitor Airbus (EADSY) fell 16% to a three-year low.

Source: Reuters

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