Moody's Pessimistic About Ford

(RTTNews) - Moody's Investors Service on Tuesday changed its outlook on Ford Motor Co. (F) to negative from stable. The company kept its rating on the auto maker's debt Baa2.

Moody's said that Ford's Baa2 senior unsecured rating reflects the competitive position the company holds in the North American and Chinese auto markets, and its sound liquidity position, however, Ford faces a more challenging operating environment including rising incentives, softening demand in North America, higher commodity costs, and increased spending to expand its portfolio of electric vehicles.

"These factors have contributed to weaker operating performance and an erosion in credit metrics which are now weak for the Baa2 rating level," Moody's said.

Ford's ability to stabilize its outlook will be determined by the pace at which it can successfully implement the Fitness Redesign undertaking, Moody's added.

Moody's expect Ford's operating performance to remain under pressure into 2019.