6:55:21 AM PDT - Monday, March 30th, 2020

Ford Becomes Largest Fallen Angel After S&P Downgrade to Junk  

By Editor - Wed Mar 25, 3:58 pm

(Bloomberg) — Ford Motor Co. was cut to junk by S&P Global Ratings as the coronavirus pandemic delivers a shock to the global auto industry and renders the carmaker the largest fallen angel to date.S&P downgraded Ford’s credit rating one notch to BB+ and may cut it further, according to a statement. The move follows Moody’s Investors Service, which dropped its rating Ford for the second time in sixth months earlier Wednesday. Its two high-yield ratings will remove its $35.8 billion of debt from the Bloomberg Barclays investment-grade index at the end of the month.Ford is one of many auto companies facing what Moody’s calls an unprecedented “credit shock,” with the coronavirus outbreak also posing a major threat to peers including General Motors Co. and Volkswagen AG. But Ford is particularly at risk because of the problems it’s been having with executing an $11 billion restructuring that’s yet to improve performance.The cost to protect Ford’s debt against default for five years has soared this month more than fourfold, though it’s come down this week

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Ford Becomes Largest Fallen Angel After S&P Downgrade to Junk

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