Moody's downgrades debt rating for largest Boeing supplier

Wednesday's event will be the third congressional hearing into the Max. The previous two have focused on FAA oversight of Boeing, and whether it has been tough enough. (Source: Boeing/MGN)
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WICHITA, Kan. (AP) -- Moody's Investors Service has downgraded the debt rating for Spirit AeroSystems to junk-bond status after the major supplier of fuselages for Boeing's troubled 737 Max announced massive layoffs last week.

Monday's downgrade comes after Spirit announced on Friday that it was laying off 2,800 workers in Wichita and that it planned smaller workforce reductions later this month at its plants in Tulsa and McAlester, Oklahoma.

Spirit produced about 70% of the 737 Max, including the fuselage and other major components.

Contracts with Boeing for the Max represents more than half of Spirit's annual income.