Harley-Davidson may face a downgrade of its corporate credit rating because of retaliatory tariffs by the European Union.
S&P Global Ratings warned of the possible downgrade on Wednesday, citing concern about “near-term cost increases” because of the EU tariffs. S&P warned in January it was worried about Harley-Davidson’s sales declines.
Harley-Davidson said on Monday that it would lose as much as $100 million per year because of EU tariffs on motorcycles that it ships from the United States. Those tariffs are a retaliation for trade penalties imposed by the Trump administration.
A downgrade from a credit rating bureau like S&P makes borrowing more expensive for companies. S&P’s rating for Harley is A-minus — not sterling but in the top tier.
CNNMoney (New York) First published June 27, 2018: 10:07 AM ET