• S&P Global Ratings downgraded Ford bonds to junk.
  • The motor company’s finances are an absolute wreck.
  • No government bailouts this time. Let the market flip the automaker.

Credit rating agency S&P Global just downgraded bonds issued by Ford Motor Company to junk status. It’s not just the “coronavirus recession” that S&P’s worried about.

Back in 2018, the agency noted “prolonged weakness” in Ford’s profits and cash flow relative to expectations. Drastic restructuring plans further increased its “execution risks.” The global pandemic took Ford’s precarious situation and made it frightfully dire.

Ford’s not the only American automaker in trouble, just the one worst prepared for trouble going into this crisis. Moody’s – which just cut Ford’s credit rating for the second time in six months – says the entire industry faces an unprecedented “credit shock.”

There’s been talk of another auto bailout like the last round in 2009. But this time, Washington should let businesses fight for their own survival.

Look What Ford Did With the Last Bailout

Don’t let Ford dump its junk bonds on the U.S. taxpayer. | Source: Johannes EISELE / AFP

With the world…

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Author: W. E. Messamore


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