In a move to shore up its sagging finances, Boeing has announced plans to raise up to $25bn through stock and debt offerings and a $10bn credit agreement with major lenders amid a production and regulatory crisis.

Boeing announced its plans on Tuesday.

It was not clear when and how much the plane maker would eventually raise via the offering, but analysts estimate that Boeing would need to raise somewhere between $10bn and $15bn to be able to maintain its credit ratings, which are now just one notch above junk.

The company is grappling with a slump in production of its best-selling 737 MAX jet following a mid-air door panel blowout earlier this year and a strike by thousands of United States union workers since September 13.

Boeing said on Tuesday it had not drawn on the new $10bn credit facility arranged by BofA, Citibank, Goldman Sachs and JPMorgan, or its existing revolving credit facility.

“These are two prudent steps to support the company’s access to liquidity,” Boeing said, adding that the potential stock and debt offerings would provide options to support its balance sheet over a three-year period.

The company’s shares were up by 1.6 percent on Tuesday.

S&P Global and Fitch had warned of a downgrade last month. The ratings agencies said on Tuesday that the stock and debt offerings could help preserve Boeing’s investment-grade rating.

“The supplemental credit facility also seems like a sensible precaution,” S&P Global’s Ben Tsocanos said.

However, some analysts were not convinced.

“We take the vagueness and breadth of the shelf announcement and the need for the temporary financing as implying that the banks are struggling to sell this issue to potential investors or lenders,” Agency Partners analyst Nick Cunningham said.

The offering was too big for immediate liquidity needs or not big enough to permanently refinance the company, Cunningham noted, adding that it may imply short-term liquidity is worse than thought.

Cunningham suspended his recommendation and price target for Boeing’s shares.

On Monday, Emirates Airlines president Tim Clark became the first senior industry figure to articulate fears over Boeing’s ability to tackle its worst-ever crisis intact.

“Unless the company is able to raise funds through a rights issue, I see an imminent investment downgrade with Chapter 11 looming on the horizon,” Clark told Air Current, an aviation industry publication.

Boeing will use the funds for general corporate purposes, according to paperwork filed with the US markets regulator on Tuesday.

The planemaker had cash and cash equivalents of $10.89bn as of June 30.

Rising costs

The strike is costing the company more than $1bn per month, according to one estimate that was released before Boeing announced it would cut 17,000 jobs or 10 percent of its global workforce.

The company and the Machinists Union, which represents about 33,000 striking workers in the US Pacific Northwest, are yet to reach an agreement over a new contract and talks have become increasingly heated.

On Tuesday, hundreds of striking workers packed the main hall at union headquarters chanting,  “Pension! Pension! Pension!” and “One day longer, one day stronger!”

“We want Boeing management to know that we’re strong and united, and their scare tactics aren’t going to work,” said Matthew Wright, a 52-year-old electrician who works on the 767 jet. “We’re not afraid of them.”

Boeing last week withdrew its latest offer, which included a 30 percent wage increase over four years, after talks also attended by federal mediators broke down.

US Acting Deputy Secretary of Labor Julie Su met with Boeing and the union in Seattle on Monday in a bid to break the deadlock.

US Representative Pramila Jayapal gave a rousing speech at the rally on Tuesday, addressing the cheering crowd and slamming Boeing for prioritising executive bonuses and share buybacks over everyday workers’ pay. The legislator, whose district includes most of Seattle, called on Ortberg to end the strike.

“He has an opportunity to turn this around and to actually give you the contract that you deserve, so that we can get back to building quality planes, so that you can get back to doing your jobs, so that the United States of America can continue to have the most sophisticated, quality company in the Boeing company that it has ever had,” she said.

“Let’s make Seattle Boeing town again!”