Get the latest market trends in your inbox

Stay on top of the latest market trends and economic insights with the Axios Markets newsletter. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Denver news in your inbox

Catch up on the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Des Moines news in your inbox

Catch up on the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Minneapolis-St. Paul news in your inbox

Catch up on the most important stories affecting your hometown with Axios Minneapolis-St. Paul

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tampa-St. Petersburg news in your inbox

Catch up on the most important stories affecting your hometown with Axios Tampa-St. Petersburg

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Boeing 737 MAX aircrafts on Oct. 23, 2019. Photo: David Ryder/Getty Images

After it laid off 2,800 employees last week, citing "ongoing uncertainty" related to Boeing’s 737 MAX jet, Moody's downgraded the secured debt of airplane parts supplier Spirit AeroSystems and handed it a Ba2-PD Probability of Default rating.

What it means: Wichita, Kansas-based Spirit gets about half of its annual revenue from supplying parts for the MAX, which has been grounded for months following two fatal crashes and remains in a production halt indefinitely.

  • Eoin Roche, Moody's lead analyst for Spirit, said he expects "Spirit's liquidity profile will quickly and materially erode" unless something drastic changes, and any developments that could help salvage it "remain largely out of the company's control."
  • Spirit's stock fell nearly 3% on Monday and has dropped almost 25% in the past two months.

Why it matters: This is the latest piece of fallout from Boeing's two crashes, showing how the production freeze could have ramifications throughout the manufacturing industry and the U.S. economy.

The big picture: Boeing's decision to suspend 737 MAX production could hit dozens of companies, Moody's warned in a separate note on Friday, identifying 24 firms with exposure to Boeing and its supply chain and placing four on review for downgrades.

  • "Several companies face potentially significant earnings and cash flow pressures that could erode their liquidity in relatively short order."
  • The decision to suspend production indefinitely means Boeing will share the financial burden of the crashes with its suppliers "on a fairly immediate basis, heightening operational disruption and financial risk for all."

Don't forget: Indonesia’s Lion Air considered putting its pilots through simulator training in 2017 before flying the 737 MAX but abandoned the idea after Boeing convinced them it was unnecessary, Bloomberg reported Monday.

Go deeper:

Go deeper

The social media addiction bubble

Illustration: Annelise Capossela/Axios

Right now, everyone from Senate leaders to the makers of Netflix's popular "Social Dilemma" is promoting the idea that Facebook is addictive.

Yes, but: Human beings have raised fears about the addictive nature of every new media technology since the 18th century brought us the novel, yet the species has always seemed to recover its balance once the initial infatuation wears off.

Young people's next big COVID test

Illustration: Eniola Odetunde/Axios

Young, healthy people will be at the back of the line for coronavirus vaccines, and they'll have to maintain their sense of urgency as they wait their turn — otherwise, vaccinations won't be as effective in bringing the pandemic to a close.

The big picture: "It’s great young people are anticipating the vaccine," said Jewel Mullen, associate dean for health equity at the University of Texas. But the prospect of that enthusiasm waning is "a cause for concern," she said.

8 hours ago - World

New Zealand authorities charge 13 parties over deadly volcano eruption

Prime Minister Jacinda Ardern at New Zealand's parliament in Wellington. Photo: Mark Tantrum Photography via Getty Images

New Zealand authorities laid safety violation charges Monday against 10 organizations and three individuals over the fatal Whakaari/White Island volcanic disaster last December, per a statement from the agency WorksSafe.

Details: WorksSafe declined to name those charged as they may seek name suppression in court. But Prime Minister Jacinda Ardern said government agencies GNS Science, which monitors volcanic activity, and the National Emergency Management Agency were among those charged over the "horrific tragedy" that killed 22 people.

Get Axios AM in your inbox

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!