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|Ford Motor Company (NYSE:F) has been in a downward spiral since 2014. Threats can push Ford into bankruptcy much sooner than most realize. In September 2019, Moody’s delivered a blow to the automotive giant by downgrading its credit rating to ‘junk’. The S&P followed suit and downgraded Ford’s debt to BBB-, just a notch above junk. Ford’s long-term debt has covenants that trigger when two out of four rating agencies deem it junk. |
The covenants, if triggered, will make it difficult for Ford to obtain funding.
|Ford committed $11 billion in a bid to revive the company. Investors have been losing patience as their earnings continue to be depressed because of losses incurred in China.|