Standard & Poor’s Cuts Ford’s Debt Rating
From Bloomberg News
Ford Motor Co.’s credit ratings on $180 billion of debt were cut to the lowest investment grade by Standard & Poor’s Rating Services, which said the automaker’s ability to improve profit and cash flow is limited.
Long-term debt of the world’s second-largest automaker, the most widely held among corporate issuers, was lowered one level to BBB-minus.
Ford’s bonds rallied, leading corporate debt higher, after S&P; said its outlook for the Dearborn, Mich., company was “stable,” and indicated that a reduction to below investment grade, or junk, was unlikely for at least two years.
Ford’s shares rose 75 cents, or 6.1%, to $13.06 on the New York Stock Exchange.
From Bloomberg News
