S&P Cuts Ford to Notch Above Junk

[underpants]

http://story.news.yahoo.com/news?tmpl=story&cid=568&ncid=749&e=1&u=/nm/20031112/bs_nm/autos_ford_dc

DETROIT (Reuters) - Standard & Poor's cut its rating on Ford Motor Co.'s (NYSE:F - news) debt on Wednesday to one notch above "junk," a blow to the giant automaker although financial markets were relieved the action was not worse.

The long-awaited downgrade to "BBB-," the lowest possible investment grade rating, covers some $180 billion of debt, mostly from finance unit Ford Credit, making Ford bonds the most widely held in the investment grade corporate bond market.


"Ford's profitability and cash flow remain poor, and S&P believes that only limited improvement will be achievable over the next few years," S&P analyst Scott Sprinzen said in a statement accompanying the downgrade.

A cut to "junk" status would force many mutual funds to sell their holdings in Ford or prevent them from buying since they are restricted from holdings in companies with a "junk" rating.


Despite the latest downgrade, Ford should have no problem selling its corporate bonds to raise money because its credit ratings remain in the investment-grade area, which the bond market considers to have a low chance of default.

[goforit]

1. So true.

I do believe Matel makes a better quality vehicle!

[Kolesar]

2. I drive a Ford

It is three years old and has had zero problems. I baby it, though!

[aquart]

4. My Mama had one of their lemons.

Years of repairs, of being stranded and left in the hands of larcenous tow-truck operators .....

Oh, it was fun for the white-haired old lady.

[UpInArms]

3. I saw where their stock price increased on this news

and shook my head in disbelief.

Standard & Poor's cut its rating on Ford Motor Co.'s (F.N) debt on Wednesday to one notch above "junk," a blow to the giant automaker although financial markets were relieved the action was not worse.

How much worse could it have been?

This is ridiculous.

:crazy:

(second edit today because I can't remember html)

[underpants]

5. Up 66 cents to $12.97

:shrug:
http://finance.yahoo.com/q?s=F&d=t

[Ernesto]

6. I just bought a power-stroke diesel

@ $7k below sticker price. Times are tough. Ford trucks rule. Ford will be OK.