S&P Global Ratings said it’s no longer considering cutting Boeing Co.’s debt to junk status, citing factors including the planemaker’s $24 billion cash balance, which gives it a cushion to absorb future difficulties.

The ratings firm’s statement that it’s no longer considering a downgrade is the latest sign of progress in Boeing’s turnaround after a brutal 2024. The planemaker last week posted first quarter results that exceeded analysts’ forecasts. In October, the company raised about $24 billion of equity, and the next month, a machinist union voted to end a crippling strike at the company’s factories.

These steps put the company on a clearer path to boosting production of its planes, a key step in Boeing’s efforts to return to normality after a series of design and manufacturing problems have grounded its planes and spurred regulators to clamp down on the company.

S&P said it’s no longer actively considering cutting Boeing’s ratings, which at BBB- are one step above junk status. The company “appears on track to recovering from the 2024 strike-driven production halt and persistent manufacturing quality problems,” S&P Global Ratings said in a statement on Monday.

The bond grader’s outlook for Boeing’s ratings is negative, which means S&P still sees a risk of a downgrade in the medium-term.

(With assistance from Julie Johnsson.)

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