The credit quality of car companies and auto-parts suppliers is either stagnant or in decline globally, according to data from Credit Benchmark.
The decline was underlined Thursday by Ford’s decision to close its engine-making plant in Bridgend, Wales, with the loss of 1,500 jobs.
Credit Benchmark looked at the internal assessments of more than 30 banks and financial institutions that lend money to carmakers as well as suppliers of tires, shock absorbers, engine parts, brakes, and such. The data creates an average of banks’ “views” of companies’ changing credit quality.
