“If tariffs persist, they could be highly disruptive and costly for the company”: Fender’s credit rating downgraded by Moody’s – with operating costs speculated to rise by $20 million

A collection of Fender electric guitars.

Fender’s credit rating has been downgraded by credit rating analyst Moody’s, with the organization citing the impact that newly imposed tariffs will have in its assessment.

As per the report, Fender Musical Instruments Corporation’s (FMIC) Corporate Family Rating (CFR) has been downgraded from B2 to B3, which indicates a higher risk of default. Moody’s has also downgraded Fender’s Probability of Default Rating from B2-PD to B3-PD, and its senior secured term loan rating from B3 to Caa1.