the Rating Agency Standard & Poor’s downgraded Ford to junk level, from “BBB-” to “BB+”.
”the Agency noted that credit metrics and competitive position of the automaker were borderline before the outbreak of coronavirus, and the coming downturn in demand for cars even stronger undermines the financial position of the company.
in addition, about a month ago Ford announced the suspension of production at its plants in Europe and ceases production in North America. According to Bloomberg, the total debt amounts to almost $96 billion.
let’s Add, that almost at the same time the rating downgrades of Ford and other Agency — Moody’s.
the Situation may worsen as the program of purchasing corporate bonds, the fed does not include a garbage paper.
However, the decision of the agencies was expected. The cost of insurance against a default by Ford since the beginning of the year showed vertical growth and now has reached the highs since 2008