(Bloomberg) -- Ford Motor Co.’s lowering of its full-year forecast may prove to be the last straw for S&P Global Ratings, which has said it may downgrade the carmaker this year.

S&P assigned the company a negative outlook back in July of last year, citing weakness in Ford’s overseas units as well as its ongoing restructuring. The outlook applies to a 12- to 24-month period, which could result in a cut to the BBB rating. A one-notch downgrade, which S&P analyst Nishit Madlani has said is likely, would put Ford one level above junk.

Ford reduced its 2019 guidance by $500 million, in a sign an $11 billion restructuring by Chief Executive Officer Jim Hackett will take more time before a promised payoff. The forecast comes amid higher warranty costs, elevated incentive spending in North America and lower sales in China -- a key region for growth.

Moody’s Investors Service already took action last month, downgrading Ford to Ba1 -- just one step into junk -- on doubts that the turnaround plan will generate earnings and cash quickly enough. Fitch Ratings, like S&P, rates Ford BBB with a negative outlook.

--With assistance from Keith Naughton.

To contact the reporter on this story: Molly Smith in New York at msmith604@bloomberg.net

To contact the editors responsible for this story: Nikolaj Gammeltoft at ngammeltoft@bloomberg.net, Kevin Miller, Rick Green

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