Ford Credit Rating Downgraded To Junk Over Doubts Of Recovery Plan

Ford Motor Co.’s CEO Jim Hackett has been dealt a major blow by Moody’s Investors Service, which cut the automaker’s credit rating to junk over doubt his plans to fix the company will soon generate earnings and cash.

Moody’s downgraded Ford to the highest non-investment grade rating, Ba1, saying the automaker’s cash flow and profit margins are below expectations and likely to remain weak over the next two years. The descent to junk status affects one of the 15 biggest corporate bond issuers in the U.S. outside the financial sector.

PUGPROUD - 9/10/2019 3:47:20 PM

+1 Boost

While I may have no skin in the game most things in life are aptly named....Junk Bonds.

MDarringer - 9/10/2019 6:28:56 PM

-1 Boost

When you fundamentally reorient your entire line in one move, this is what happens.

MDarringer - 9/10/2019 7:04:11 PM

-3 Boost

I actually think that Ford will be poised to pull a rabbit out the the hat by having oriented itself as a manufacturer that would marry well with another. I don't know if VW is it, but Hyundai/Kia definitely would be.

Truthy - 9/11/2019 11:25:37 AM

+1 Boost

I don't believe will give up its independence.
VW and Hyundai/Kia are doing well and unlikely to invest in Ford given their debt.
Other types of cooperation are possible butunliketmy to lift their bond rating.