The Standard & Poor’s credit rating agency has warned that disbanding the US’s Export-Import Bank (Ex-Im) could have a significant impact on the future success of Boeing — the American aircraft maker receives more than a third of the bank’s credit.
A report by S&P says that Boeing could be forced to finance more of its overseas sales directly. As a result, the group “could find itself in a more difficult financing position” than its European rival Airbus when negotiating sales.
The Ex-Im has been in the news in the USA for several weeks, with some elements in the Republican Party describing it as an ‘instrument of corporate welfare that should be abolished (or at least reformed), while so-called ‘moderates’ defend the bank on the grounds that it supports thousands of jobs.
To stay in operation, Ex-Im must be ‘re-authorised’ by Congress by 30 September.
S&P said that Boeing’s competitive position against Airbus could suffer if the Ex-Im is closed down because Airbus would still be able to offer credits from the German, French and British export credit agencies.
“This could be a deciding factor for some new aircraft contracts, especially sales in emerging markets and sales to start-up airlines.”
A Boeing spokesman said: “The elimination of Ex-Im would put Boeing and thousands of companies in our US supply chain at a competitive disadvantage to Airbus and its European suppliers.”