Dec. 27 (Bloomberg) — Washington faces a credit downgrade, higher borrowing costs and the loss of jobs and tax revenue should Boeing Co. decide to move production of its new 777X jetliner to another state.

California and Missouri are among the contenders that submitted bids at the request of the Chicago-based aerospace company. They are offering incentives to lure production away from Everett, near Seattle, after Boeing's talks with union leaders reached an impasse. Washington approved $8.7 billion in tax breaks for Boeing.

"This is the place where the best commercial airplanes in the world have been built for nearly 100 years, so to have this new airplane, which is clearly going to be a blockbuster in terms of sales, not built here is dramatic," said Alex Pietsch, Washington's aerospace director.

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