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Debt restructuring helps Ford’s credit
Debt restructuring helps Ford’s credit
Posted Tuesday, Apr 14, 2009, 12:35 pm in Employee News
Standard & Poor’s raised Ford Motor Co.’s credit rating Monday, following completion of the automaker’s debt restructuring last week, but warned the company still faces substantial challenges, The Detroit News reported.
“We expect continued heavy cash losses in Ford’s automotive operations for at least the next year,” said S&P analyst Robert Schulz told The News. “We expect Ford’s cash outflows to further reduce its cash balances during the coming quarters, which will test the company’s ability to maintain sufficient liquidity into 2010.”
S&P raised Ford’s rating to “CCC+” from “SD-.” That still leaves Ford deep inside junk bond territory, the story said.
The firm said the new rating reflects the weak demand for cars and trucks, particularly in the United States and Europe, which are key markets for Ford, The News reported. It also reflects concerns that General Motors Corp. or Chrysler LLC might file for bankruptcy in the coming months, the story said. (The Detroit News)
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Rick
Nitro Year: 2007 (1 of 113,000 sold)
Nitro Model: R/T 4X4 Stone White
CAT-BACK Exhaust, CAI, Projector Head Lamps
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