Fitch downgrades Boeing on jet delays

Fitch Ratings downgraded Chicago-based Boeing Co. on Friday as the company struggles with delays in getting its new line of jets to market.

Boeing's new 787 is running three years behind schedule. Earlier this month, the Chicago company said it won't be able to deliver the plane until July at the earliest instead of February. On top of that, Boeing is faced with rising pension costs and tightening defense budgets at the Pentagon and other governments around the world.

Fitch cited the 787 delay Friday as the main impetus behind its downgrade, saying the cost of the program is hurting the company's cash flow.

The ratings agency cut Boeing one notch to "A" from "A+." That's still safely within investment-grade territory, but any downgrade could raise the company's cost of borrowing. The ratings cover about $12.4 billion in debt.

Fitch said its outlook on Boeing is "Stable," meaning another downgrade is unlikely for now.

Boeing said earlier this week that delays in the 787 program, plus pension expenses, will hurt profits this year. The company expects to make $3.80 to $4 per share, while analysts surveyed by FactSet were looking for $4.59 per share.

In midday trading, Boeing shares slipped $1.12 to $69.44.