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Ford Teeters Toward Junk With Moody's Warning of Restructuring Risks

  • Restructuring is a ‘necessity’ but could take years: Moody’s
  • Downgrade follows Ford lowering its profit outlook for 2018
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Ford Motor Co.’s credit rating was cut to one notch above junk by Moody’s Investors Service, adding to the car company’s woes after it embarked on a costly restructuring that could take years to complete.

Moody’s downgraded Ford to Baa3 from Baa2 with a negative outlook, it said in a report Wednesday. The ratings company cited erosion in Ford’s “global business position and the challenges it will face implementing” its restructuring effort that could rack up $11 billion in the next three to five years.