Bloomberg

Ford cut to junk as Moody's doubts Hackett's turnaround bid

Ford's most actively-traded bonds, Ford Motor Credit Co.'s 5.113% bonds due 2029, weakened relative to Treasuries. Foto: AP/Keith Srakocic

Ford Motor Co.'s Chief Executive Officer Jim Hackett has been dealt a major blow by Moody's Investors Service, which cut the carmaker's credit rating to junk over doubt his plans to fix the carmaker will soon generate earnings and cash.

Moody's downgraded Ford to the highest non-investment grade rating, Ba1, saying the automaker's cash flow and profit margins are below expectations and likely to remain weak over the next two years. The descent to junk status affects one of the 15 biggest corporate bond issuers in the U.S. outside the financial sector...

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