Harley-Davidson Cut to Junk Status by S&P Over Low-Cost Bike Strategy
Harley-Davidson (HOG) had its credit grade cut to junk status by S&P Global Ratings, which cited the company's strategy to sell lower-cost motorcycles to boost revenue, S&P said the strategy could lift retail sales and market share but will pressure profitability, estimating an adjusted EBITDA margin of around 5% to 6% in 2026. Margins may take several years to approach 10%, with near-term pressure from restructuring expenses and tariff costs, the report said. S&P lowered Harley-Davidson's unsecured debt rating one notch to BB+, the highest junk level,
Harley-Davidson (HOG) had its credit grade cut to junk status by S&P Global Ratings, which cited the company's strategy to sell lower-cost motorcycles to boost revenue, S&P said the strategy could lift retail sales and market share but will pressure profitability, estimating an adjusted EBITDA margin of around 5% to 6% in 2026.
Margins may take several years to approach 10%, with near-term pressure from restructuring expenses and tariff costs, the report said.
S&P lowered Harley-Davidson's unsecured debt rating one notch to BB+, the highest junk level,