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 Quantum Navigation, EVs, Auto Industry Sales and more
Sandia’s quantum navi, three things about EVs, transporting iron ore in an EV during the winter, going underwater in an EV (OK, it is a sub), state of the UK auto industry (sad), why the Big Three likes Big Vehicles, and the future of logistics.
-
Tariffs on Autos: “No One Wins”
While talk of tariffs may make the president sound tough and which gives the talking heads on cable something to talk about, the impact of the potential 25 percent tariffs on vehicles imported to the U.S. could have some fairly significant consequences.
-
Mazda, CARB and PSA North America: Car Talk
The Center for Automotive Research (CAR) Management Briefing Seminars, an annual event, was held last week in Traverse City, Michigan.