Trailer manufacturer Wabash National, which has seen a sharp downturn in its financial measurements, has hung on to its credit rating from S&P Global, but its outlook has been lowered to negative by the ratings agency.

S&P said it was affirming Wabash’s BB- issuer credit rating. It also has a B+ issue-level rating on the company’s senior unsecured notes, as well as a recovery rating of 5. Those were both affirmed by S&P.

A negative outlook at S&P Global means conditions are in place that may lead to a downgrade in a company’s rating. The recovery rating is on a scale of 1 to 6, and S&P defines that rating as measuring “the recovery prospects of a given loan or bond from a speculative-grade issuer, calculated on a nominal basis, based on future hypothetical default scenarios.” A 6 rating is highest on the scale.

Rival ratings agency Moody’s (NYSE: MCO) has not taken any action on Wabash National. Moody’s has a rating of Ba3 on Wabash National, having upgraded the company last December. Moody’s Ba3 and S&P’s BB- are considered equivalent. Both the Moody’s and S&P Global ratings are three notches below investment-grade.

Moody’s outlook on Wabash is listed as stable.

The new negative outlook for Wabash (NYSE: WNC), the ratings agency said, is based on its “expectation that … free operating cash flow to debt will remain in the high single digit area in 2024 and 2025 as the ongoing freight recession extends beyond our previous expectation.” It added that the number could rise above 10% in 2026 if there is increased freight demand.

A spokeswoman for Wabash declined comment.

That Wabash National is struggling financially is not news. Third-quarter revenue was down 26.7% year on year, and the $464 million it reported was about $13.3 million less than Wall Street forecasts, according to SeekingAlpha.

In its latest earnings report, Wabash posted a GAAP operating loss of $433 million, as it took a $450 million charge related to a recent nuclear verdict against the company.

Other numbers in Wabash’s earnings were all negative. Sales dropped to $415.5 million from $582.9 million. The gross profit margin was 10.8%, compared to 18.5% a year ago. Income from operations was $29.1 million compared with $89.4 million a year ago.

Wabash National stock is down 16.9% in the past year, closing Tuesday at $18.04.

Away from the financials, operating numbers at Wabash National paint a decidedly negative picture. The earnings report said Wabash shipped 7,585 trailers in the third quarter, compared with 10,765 a year ago. Shipments of new truck bodies declined to 3,630 from 4,160.