Moody's: Boeing, General Dynamics unchanged

Moody's Investors Service said the U.S. Supreme Court's ruling on the A-12 stealth fighter jet contract does not impact the ratings of Boeing Co. (A2/negative) or General Dynamics Corp. (A2/stable).

The Supreme Court overturned a lower court ruling that had upheld the U.S. Navy's termination for default of the A-12 program, which occurred back in 1991, the agency said.

The Supreme Court ruling upholds a key argument of Boeing and General Dynamics that it does not owe monetary damages to the Navy, although the dispute is not resolved as the case will now be sent back to the lower courts, the agency added.

The strong liquidity profiles of both Boeing and General Dynamics support the companies at levels sufficient to accommodate potential payments, and the final settlement is likely to be considerably smaller, without undue disruption to their respective businesses, Moody's said.

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