Moody's may downgrade EADS

Moody's Investors Service said it placed its A1 long-term debt rating for European Aeronautic Defence and Space Co. ("EADS") under review for possible downgrade following the announcement that production of the company's new A380 aircraft will be further delayed.

The agency said its review will focus on the earnings, cash flow and balance sheet impact of any further delays in delivery of the new super jumbo aircraft and the impact of the expected reduced cash flow at EADS' Airbus SAS subsidiary on the company's ability to continue to pursue its stated desire to increase its defense-related businesses to better balance revenues between commercial and defense activities.

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