Moody’s Investors Service said Tuesday it has placed under review for a possible downgrade the Baa1 senior unsecured debt rating of Bridgestone Corp. and the Prime-2 short-term rating of Bridgestone/Firestone Inc.
The move came after Bridgestone/Firestone, a wholly owned subsidiary of Bridgestone, said Monday that it will end its long tire-supplying relationship with Ford Motor Co.
The review reflects Moody’s concern that the termination of supply could result in a material negative impact on Bridgestone/Firestone’s sales and profitability.
The U.S. credit rating agency said it will “assess how the decision by Firestone to terminate its relationship with Ford will impact the company’s overall operations and profitability in the intermediate term and the methods Firestone puts in place to cope with these negative factors.”
In a time of both misinformation and too much information, quality journalism is more crucial than ever.
By subscribing, you can help us get the story right.