Ford Motor Co. is facing a potential downgrade from its current BBB− investment-grade rating to junk status by S&P due to financial struggles and market pressures. This downgrade could significantly raise borrowing costs for the company, which already holds $47 billion in bonds. With a 15% decline in stock price this year and less than 10% of the U.S. electric vehicle market, Ford's challenges are compounded by past leadership choices and a lack of effective strategies in the EV sector, where they have not met ambitious production goals.
Ford's investment-grade status is hanging by a thread, facing a potential downgrade to junk status, which would increase the company's borrowing costs significantly.
The automaker, facing severe market pressures, has reported a 15% drop in share price this year, exacerbated by its struggles in the electric vehicle segment.
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