Wabash, tied down in a weak trailer market, gets a debt downgrade

3 weeks ago 12

John Kingston

Thu, November 6, 2025 astatine 4:18 PM CST 5 min read

For the 2nd clip this year, Moody’s Investors Service has downgraded the indebtedness standing of trailer shaper Wabash National.

The latest determination takes the company’s firm household standing (CFR) to B2 from B1. Other changes implemented by Moody’s Wednesday were to instrumentality Wabash’s probability of default standing to B2-PD from B1-PD, and to chopped its elder unsecured notes standing to B3 from B2.

Moody’s besides kept the outlook connected Wabash (NYSE: WNC) astatine negative. While this is not rare, it is often the lawsuit astatine the ratings agencies that a institution that had been connected a antagonistic recognition ticker sees the antagonistic outlook vanish erstwhile the downgrade is implemented (or a affirmative outlook moves to unchangeable aft an upgrade).

A antagonistic outlook means a “a higher likelihood that the recognition standing whitethorn alteration successful the mean term,” according to the ratings agency.

Moody’s (NYSE: MCO) had lowered Wabash’s CFR standing to B1 from Ba3 successful May. Its determination occurred astatine astir the aforesaid clip that S&P Global Ratings (NYSE: SPGI) besides had reduced its standing connected Wabash to B+ from BB-. That B+ standing is considered adjacent to Moody’s B1 rating. As of Thursday, the S&P Global standing was inactive successful place, 1 notch much than the caller standing from Moody’s.

The B2 standing astatine Moody’s is 5 notches little than the cutoff betwixt concern people and non-investment people debt. The S&P Global is 4 notches beneath the cutoff.

“The standing downgrade reflects our anticipation that Wabash’s recognition metrics volition stay anemic implicit the adjacent 12 months,” Moody’s wrote successful its report. “Wabash’s net person importantly deteriorated amid a protracted down rhythm successful motortruck trailer accumulation arsenic the company’s customers defer investments successful their proscription fleets.”

In its latest net released past week, Wabash said it shipped 6,940 trailers successful the 3rd 4th compared to 7,585 successful the 3rd 4th of 2024. Truck assemblage shipments were 3,065 versus 3,630 a twelvemonth earlier.

In the net report, the institution said its backlog of $829 cardinal astatine the extremity of the 3rd 4th was the effect of a “wait and see” attack astatine its customers.