Harley-Davidson (HOG) had its credit grade cut to junk status by S&P Global Ratings, which cited the company's strategy to sell lower-cost motorcycles to boost revenue, Bloomberg reported Wednesday.

S&P said the strategy could lift retail sales and market share but will pressure profitability, estimating an adjusted EBITDA margin of around 5% to 6% in 2026, according to the report.

Margins may take several years to approach 10%, with near-term pressure from restructuring expenses and tariff costs, the report said.

S&P lowered Harley-Davidson's unsecured debt rating one notch to BB+, the highest junk level, Bloomberg reported.