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7/22/2019, 11:32 PM (Source: TeleTrader)
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Moody's changes Boeing outlook to negative

Ratings agency Moody's Investors Service, Inc. downgraded the Boeing Company's outlook to negative following the company's 737 MAX crisis. The software failures attributed to the aircraft led to two plane crashes with over 300 fatalities. Boeing stated earlier that it will take a $4.9 billion charge in the second fiscal quarter due to the grounding of the planes.

"The change in outlook to negative principally reflects that the grounding of the company's 737 MAX aircraft will run longer than we had expected, which will compound its operational disruption, costs and the size of the investment in working capital as production remains at a substantial rate of 42 per month," said Moody's Senior Vice President Jonathan Root.

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