Harley-Davidson's stock plummeted 5% during intraday trading on Thursday, as investors reacted to multiple negative developments surrounding the iconic motorcycle maker.

The decline follows S&P Global Ratings placing Harley-Davidson's credit ratings on negative watch, signaling a potential downgrade to junk status. S&P rates the company's debt at BBB-, the lowest investment-grade rating, and expressed uncertainty about how long it will take Harley-Davidson to restore operating margins to appropriate levels. A downgrade to junk status would significantly hamper the company's borrowing ability and limit its investor base.

Adding to the pressure, DA Davidson lowered its price target on Harley-Davidson to $25 from $30 while maintaining a Buy rating. The company's fourth-quarter results and outlook for the year came in well below Wall Street expectations, though analysts noted management's commitment to a turnaround plan expected to be announced in May.