Shares of Ford (F) were slipping near midday after an analyst from Morgan Stanley commented on the recent Moody’s downgrade of the car maker’s investment rating, saying the rating cut is an “important catalyst” to further focus investor and management attention on the risks and opportunities “inherent in the Ford story”.

MOODY’S DOWNGRADE: Earlier this week, Moody’s Investors Service said it downgraded the rating of Ford to a notch above junk bond status, adding that the outlook is negative. The firm warned that the status could be further cut as the carmaker struggles overseas and invests roughly $11B on a turnaround plan. A Moody’s spokesman told the Detroit Free Press that the Baa3 rating on Ford “signifies the likelihood of a default.” The firm added that investments in the company’s turnaround plan are necessary, but it will take years before such investments result in better performance.

MORGAN’S THOUGHTS: In a research note to investors, Morgan Stanley analyst Adam Jones maintained an Overweight rating and $15 price target on Ford, saying that the Moody’s downgrade helps focus the attention of the markets across the car maker’s cap structure on the need for decisive strategic action. While Jones said there is still enough time to execute, he wishes he knew the plan. The analyst noted that the downgrade comes despite a bull market in the U.S. economy and marks “another sign” that the company must executive “significant structural change”. Jones forecast that Ford’s free cash flow will slip “significantly” in 2019 compared to 2018 and said that the company must begin to execute more aggressively on fitness initiatives by year end.

WHAT’S NOTABLE: Reuters reported that Ford president of North America Kumar Galhotra told reporters during a conference call that the company has killed a plan to sell a Chinese-made small vehicle in the U.S. due to the prospect of higher U.S. tariffs. Galhotra noted that the decision will not cost jobs or have a major impact on the company’s U.S. sales because the vehicle would have been a niche car for the U.S., the report says. The move comes as President Trump is escalating a trade dispute with China, with Trump having already imposed duties on Chinese-made vehicles of up to 25%, Reuters noted.