This site uses cookies to provide you with a great user experience. By using BondbloX, you accept our use of cookies.
Bond Market News
Ford Set to Be Close to Losing IG Status at S&P, as per Bloomberg Intelligence
May 9, 2025
Ford Motor is said to face a high risk of losing its IG credit rating at S&P due to shrinking profit margins from tariff costs, according to Bloomberg Intelligence (BI). Currently rated BBB-, just above junk, they note that S&P may place Ford on credit watch negative, signaling a possible downgrade. Moody’s already rates Ford at Ba1, a notch below IG-level. A second downgrade is expected to increase borrowing costs and exclude Ford from IG bond indexes, potentially shifting $47bn of its bonds to the HY market – this could make Ford the largest issuer in the junk grade space. Although less impacted by tariffs than General Motors as per BI, Ford still anticipates a $1.5bn earnings hit and has withdrawn its full-year guidance due to trade policy uncertainty. The company’s credit rating history shows prior downgrades in 2005 and 2020, with a return to IG status in 2023. Ford had $157.8bn in debt at the end of Q1. A company spokesperson declined to comment on the ratings.
Ford’s bonds were trading weaker across the curve, with its 6.5% 2035s down at 96, yielding 7.1%.
For more details, click here
Go back to Latest bond Market News
Related Posts:
BondbloX Pte. Ltd. is regulated by the Monetary Authority of Singapore as a Recognised Market Operator ("RMO") and exempted from Section 49(1) of the Securities and Futures Act (Cap. 289) ("SFA") under Section 49(7) of the SFA.