Ford Becomes Largest Fallen Angel After S&P’s Cut to Junk

[kmiklas]

https://www.bloomberg.com/news/articles/2020-03-23/ford-cut-by-fitch-as-coronavirus-batters-economy

What is the medium- to long-term effect of this on Ford's equity price?

I would think that it would be a hard hit, but the price isn't really moving down that fast. Was this priced in? Plants have closed, demand is down, and even before CV, Ford was struggling.

This I also do not understand. There is consistent demand for Ford vehicles, no? They are fleet vehicles: police, fire, power companies, telecom companies, all buy Ford.

A friend of mine said that milennials don't want to own vehicles... but perhaps this is a stretch? I see the F-150, Mustang, Explorer, and Escape being solid vehicles with good markets.

 

[Cuddles]

so that's why they're making ventilators? A little good will goes a long way for a 2nd auto bailout....though Ford did not partake the 1st time around

 

[ironchef]

A little good will goes a long way for a 2nd auto bailout....though Ford did not partake the 1st time around

No good deed left unpunished.

Ford had the foresight to borrow just before the crash and was able to survive the great recession without Government bailout. As a result they have a huge debt load which is bad for today.