Boeing may seek to obtain up to $25 billion in financing to bolster its financial position.

• Boeing stated that it might obtain up to $25 billion to strengthen its financial position.
• In a separate filing, the company announced a $10 billion credit agreement with banks.
• Credit ratings agencies are issuing warnings to Boeing that it may lose its investment-grade rating.

The troubled manufacturer announced on Tuesday that it could raise as much as $25 billion in shares or debt over three years to increase liquidity amid a more than monthlong machinist strike and ongoing issues with its aircraft programs.

Boeing stated that the universal shelf registration offers the company the flexibility to explore various capital options to maintain a balanced financial position over three years.

Boeing shares are down nearly 42% this year as of Tuesday.

Boeing is predicted to raise between $10 billion and $15 billion in equity, according to Bank of America aerospace analysts.

According to BoFA analyst Ron Epstein, who wrote on Tuesday, we anticipate that Boeing will prioritize offering equity first in order to strengthen its balance sheet in the short term, while still retaining the possibility to issue equity debt with a lower risk of a credit downgrade in the future.

Boeing's announcement on Tuesday will improve its financial flexibility and alleviate near-term liquidity concerns, according to Fitch Ratings.

Boeing is attempting to strengthen its financial position amidst credit rating agency warnings that it may lose its investment-grade standing.

Boeing is losing more than $1 billion a month due to the machinist strike, as estimated by S&P Global Ratings, which had previously warned about a downgrade. The two sides remain at an impasse.

Boeing previously announced a $10 billion credit agreement with a group of banks.

"The company has not utilized its credit facility or existing credit revolver during the challenging environment, according to a statement."

Boeing's CEO, Kelly Ortberg, announced on Friday that the company intends to lay off approximately 17,000 employees, which represents 10% of its global workforce, in order to reduce expenses.

"He emphasized the importance of being realistic about the time it will take to achieve key milestones on the path to recovery, while also focusing resources on areas that are core to Boeing's identity."

Boeing's defense and commercial airplane units incurred $5 billion in charges, as announced along with preliminary financial results indicating mounting losses.

Boeing's CEO, Ortberg, will host his first quarterly investor call on Oct. 23.