Mexican Media Brands
Moody’s Cuts Ford Rating to “Junk”
Ford Motor Co.’s credit rating has been reduced to one notch below investment grade by Moody’s Investors Service.
#economics
Share
Ford Motor Co.’s credit rating has been reduced to one notch below investment grade by Moody’s Investors Service.
Moody’s says the drop into “junk” territory reflects the rating service’s worries about Ford’s ability to improve below-grade cash flow and profit margins over the next two years.
Last year the service changed its rating outlook for Ford from “stable” to “negative.” It later lowered Ford by one position to its lowest investment grade, Baa3.
At the time, Moody’s cautioned that Fitness Redesign, Ford’s $11 billion global overhaul, is necessary but unlikely to deliver substantive financial and operating benefits within two years. The rating service warned that a further downgrade was likely unless the carmaker showed “clear progress” by mid-2019.
Ford remains rated two steps above junk status by Fitch Ratings and S&P Global Ratings.
RELATED CONTENT
-
On Lincoln-Shinola, Euro EV Sales, Engineered Carbon, and more
On a Lincoln-Shinola concept, Euro EV sales, engineered carbon for fuel cells, a thermal sensor for ADAS, battery analytics, and measuring vehicle performance in use with big data
-
On The German Auto Industry
A look at several things that are going on in the German auto industry—from new vehicles to stamping to building electric vehicles.
-
Inside Ford
On this edition of “Autoline After Hours” Joann Muller, Detroit bureau chief for Forbes, provides insights into what she’s learned about Ford, insights that are amplified on the show by our other panelists, Stephanie Brinley, principal analyst at IHS Markit who specializes in the auto industry, and Todd Lassa, Detroit Bureau Chief for Automobile.