Ford Motor Co. was cut to junk by S&P Global Ratings as the coronavirus pandemic delivers a shock to the global auto industry, rendering the No. 2 U.S. automaker 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 Wednesday.
The move follows Moody’s Investors Service, which dropped its rating Ford for the second time in sixth months earlier Wednesday.
With Ford’s factories shut around the globe — including all North American plants — and no decision as to when they’ll resume production, the automaker is under immense financial pressure, according to S&P.
“The stress of having all of a company’s plants shut down differs from that of a conventional recessionary downturn,” the agency said, noting that the shutdowns mean Ford isn’t generating revenue to cover costs. “The rate of cash burn, even for a few months, could be faster than that which transpires during a typical…