Cars and Drivers
S&P Takes Positive Outlook on Ford, Investment-Grade Rating Looms
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Ford Motor Co. (NYSE: F) is getting a positive review from Standard & Poor’s this Friday afternoon. The ratings agency has changed the outlook to Positive and has maintained Ford’s BB+ credit rating. The move might not sound like much, but this is one more move from “junk ratings” to “investment grade” ratings.
What S&P highlighted was the strength of the North American auto market and Ford’s performance with positive cash flow and profitability. S&P even noted in the outlook, “We belive Ford will act with increasing decisiveness and commitment to restructure Europe to profitability in the face of likely several more years of weak vehicle sales in Europe.”
Today’s action hints at raising the rating to investment grade (BBB-) if Ford can show that it can improve the balance of profitability across all of its regions. Ford shares are down by 0.25% at $9.32 so far today against a 52-week range of $8.82 to $13.05. Rival car-maker General Motors Company (NYSE: GM) is seeing its shares trade far worse today with a drop of 1.4% to $20.36 against its 52-week range of $18.72 to $27.68.
JON C. OGG
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