Boeing credit rating boosted

CHICAGO — Moody’s Investors Service raised the debt ratings of Boeing Co. Wednesday, citing its increased cash flow and recent focus on debt reduction.

The rating agency increased the aerospace company’s senior unsecured ratings one level to A2 from A3 and its short-term rating to Prime-1 from Prime-2. The ratings were also applied to subsidiary Boeing Capital Corp.

Moody’s analyst Rich Bittenbender credited the combined impact of less debt and more cash flow at Boeing, which has lowered its underfunded pension obligations over the past two years.

“Cash flow has increased due to growing margins in the company’s defense segments and increased production and margins in the commercial aerospace segment,” he wrote in a report he co-authored with Michael Mulvaney.

The Chicago-based company reported on Feb. 1 that fourth-quarter earnings more than doubled as its resurgent commercial airplane division posted strong gains. Boeing also raised its profit outlook for 2006, citing better operating performance.

Shares of Boeing rose 60 cents to close at $76.05 on the New York Stock Exchange after reaching a new all-time high of $76.30.