Ford Motor Co. was minimize to junk by S&P World Rankings because the coronavirus pandemic delivers a shock to the worldwide auto business, rendering the No. 2 U.S. automaker the most important fallen angel up to now.
S&P downgraded Ford’s credit standing one notch to BB+ and will minimize it additional, in line with an announcement Wednesday.
The transfer follows Moody’s Traders Service, which dropped its score Ford for the second time in sixth months earlier Wednesday.
With Ford’s factories shut across the globe — together with all North American vegetation — and no choice as to once they’ll resume manufacturing, the automaker is underneath immense monetary stress, in line with S&P.
“The stress of getting all of an organization’s vegetation shut down differs from that of a traditional recessionary downturn,” the company stated, noting that the shutdowns imply Ford isn’t producing income to cowl prices. “The speed of money burn, even for just a few months, may very well be quicker than that which transpires throughout a typical…