Ford’s Debt Will Get Downgraded
In September 2019, Moody’s delivered a major blow to the automotive giant by downgrading its credit rating to ‘junk’. The S&P followed suit and downgraded Ford’s debt to BBB-, just a notch above junk.
The news was not well-received by the markets, as Ford’s long-term debt has covenants that trigger when two out of four rating agencies deem it junk. The covenants, if triggered, will make it difficult for Ford to obtain funding in the future.
Me, I read that as saying that Ford’s debt is free of credit rating triggers. But then whaddaIknow?