Tariffs Seen As Negative for Auto Sector Credit Ratings -- Market Talk

Dow Jones

Mar 06, 2025

1133 ET - President Trump's tariffs on imports from Canada and Mexico could lead to auto-industry production slowdowns and even widespread stoppages, Morningstar DBRS's Robert Streda suggests. He believes if production disruptions persist over an extended period, it could result in a sizable associated cash burn and erosion of liquidity and could place additional pressure on the credit ratings of some original equipment manufacturers. As it now stands, Morningstar expects the credit ratings of most auto manufacturers will be resilient to the tariffs, though those with a significant dependence on North America for earnings and with a material manufacturing footprint in Mexico and Canada could eventually be subject to negative rating actions. (robb.stewart@wsj.com; @RobbMStewart)

(END) Dow Jones Newswires

March 05, 2025 11:34 ET (16:34 GMT)

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He believes if production disruptions persist over an extended period, it could result in a sizable associated cash burn and erosion of liquidity and could place additional pressure on the credit ratings of some original equipment manufacturers. As it now stands, Morningstar expects the credit ratings of most auto manufacturers will be resilient to the tariffs, though those with a significant dependence on North America for earnings and with a material manufacturing footprint in Mexico and Canada could eventually be subject to negative rating actions. 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He believes if production disruptions persist over an extended period, it could result in a sizable associated cash burn and erosion of liquidity and could place additional pressure on the credit ratings of some original equipment manufacturers. As it now stands, Morningstar expects the credit ratings of most auto manufacturers will be resilient to the tariffs, though those with a significant dependence on North America for earnings and with a material manufacturing footprint in Mexico and Canada could eventually be subject to negative rating actions. (robb.stewart@wsj.com; @RobbMStewart) \n</p>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  March 05, 2025 11:34 ET (16:34 GMT)\n</p>\n<p>\n  Copyright (c) 2025 Dow Jones &amp; Company, Inc.\n</p>\n</font>\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"STLA","symbol_name":"Stellantis NV","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2517941288","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2517941288","pubTimestamp":1741192440,"columns":[],"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"1133 ET - President Trump's tariffs on imports from Canada and Mexico could lead to auto-industry production slowdowns and even widespread stoppages, Morningstar DBRS's Robert Streda suggests. He believes if production disruptions persist over an extended period, it could result in a sizable associated cash burn and erosion of liquidity and could place additional pressure on the credit ratings of some original equipment manufacturers. As it now stands, Morningstar expects the credit ratings of most auto manufacturers will be resilient to the tariffs, though those with a significant dependence on North America for earnings and with a material manufacturing footprint in Mexico and Canada could eventually be subject to negative rating actions. ","collect":0,"end_time":0,"defaultTopTitle":"","property":["rate"],"viewcount":null,"language":"en","relate_stocks":{"STLA":"Stellantis NV","GM":"通用汽车","MGA":"曼格纳国际","F":"福特汽车"},"translate_title":"关税被视为对汽车行业信用评级不利——市场讨论","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"MGA":0.9,"GM":0.9,"STLA":0.9,"F":0.9},"content_text":"1133 ET - President Trump's tariffs on imports from Canada and Mexico could lead to auto-industry production slowdowns and even widespread stoppages, Morningstar DBRS's Robert Streda suggests. He believes if production disruptions persist over an extended period, it could result in a sizable associated cash burn and erosion of liquidity and could place additional pressure on the credit ratings of some original equipment manufacturers. As it now stands, Morningstar expects the credit ratings of most auto manufacturers will be resilient to the tariffs, though those with a significant dependence on North America for earnings and with a material manufacturing footprint in Mexico and Canada could eventually be subject to negative rating actions. (robb.stewart@wsj.com; @RobbMStewart) \n\n\n  (END) Dow Jones Newswires\n\n\n  March 05, 2025 11:34 ET (16:34 GMT)\n\n\n  Copyright (c) 2025 Dow Jones & Company, Inc.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"-1","news_tag":"","news_rank":0,"symbols":[],"gpt_button":0,"need_auth":true,"code":"91000000","status":"200"}}}