Hyperdrive
Auto Giants Across the Globe Warned of Coming ‘Credit Shock’
- Moody’s cuts BMW and Ford, places major peers under review
- Rater expects demand to drop by a third in second quarter
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BMW AG, Ford Motor Co. and Toyota Motor Corp. were downgraded by Moody’s Investors Service and their major European, U.S. and Japanese competitors were put under review for possible cuts as the coronavirus pandemic raises risks for automakers worldwide.
BMW, the European carmaker with the best credit profile, was dropped one level to A2, while Ford’s rating fell to Ba2, another rung into junk. Moody’s put General Motors Co. under review along with Daimler AG, Jaguar Land Rover Automotive Plc, PSA Group, Renault SA, Volkswagen AG, Volvo Car AB and McLaren Holdings Ltd. In Japan, Toyota, Nissan Motor Co. and Honda Motor Co. were downgraded on Thursday.