Trailer manufacturer Wabash National, which has seen its stock price drop by more than 60% in the past year, saw its debt rating downgraded by both S&P Global Ratings and Moody’s this month.
The latest move came earlier this week when S&P Global (NYSE: SPGI) cut its rating on Wabash (NYSE: WNC) to B+ from BB-. The move was foreshadowed in November when S&P Global Ratings lowered Wabash’s outlook to negative. Most downgrades come after a company is first reduced to a negative outlook, just as an upgrade usually comes after a positive outlook.
Earlier this month, Moody’s (NYSE: MCO) cut its rating on Wabash National to B1. B1 is considered equivalent to a B+ rating from S&P Global.
Both ratings are four notches below the cutoff at S&P between investment-grade and non-investment-grade debt.
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