|S&P raises Ford to investment-grade status||| Print ||
|Written by Associated Press|
|Friday, 06 September 2013 14:02|
NEW YORK (AP) — Standard & Poor's Ratings Services has lifted Ford's credit rating to investment-grade status on healthy sales in North America. The three major credit-ratings agencies now rate the automaker's debt investment-grade.
An investment-grade rating signals that a company's debt has a low risk of default. Companies with investment-grade credit ratings generally pay lower interest on debt.
In May 2012 Moody's named Ford's debt ratings investment-grade for the first time in seven years. Fitch Ratings upgraded the company to investment-grade in April 2012.
S&P credit analyst Dan Picciotto said Friday that Ford is on track with efforts to diversify its profits across regions and has kept the interest of North American customers. S&P's rating on Ford Motor Co.'s debt is now "BBB-"— the lowest investment grade — up from "BB+".
S&P also said that it is changing its outlook for General Motors Co. to "positive" from "stable," putting it in line for a possible upgrade to an investment-grade rating. Picciotto said that an upgrade could occur by the end of next year if GM's overall auto operations continue to improve.
GM has been targeting a return to investment-grade credit status. It's been at "junk" status since 2005.
Shares of General Motors rose 23 cents to $36.56 in afternoon trading. Ford's stock fell 13 cents to $17.17.
Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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