Arab Today, arab today moody\s boosts ford\s credit rating
Last Updated : GMT 07:24:51
Arab Today, arab today
Arab Today, arab today

Moody\'s boosts Ford\'s credit rating

Arab Today, arab today

Arab Today, arab today Moody\'s boosts Ford\'s credit rating

London - Arabstoday

Moody\'s Investors Service upgraded Ford Motor Co.\'s debt to investment grade, culminating the automaker\'s six-year struggle to win back the Blue Oval and other assets mortgaged in 2006. Moody\'s is the second agency to upgrade Ford\'s debt from junk status, paving the way for the company to recover assets it mortgaged in 2006 to stave off bankruptcy. The company raised $23.5 billion in a move that allowed it to avoid government bailouts or bankruptcy when the industry collapsed in 2008. \"The Ford Blue Oval is back where it belongs with the Ford family of 166,000 employees around the world,\" Bill Ford Jr., executive chairman of the automaker, said in a statement. \"This is a great day for us and is the result of several years of hard work and progress by everyone associated with Ford.\" Moody\'s said the upgrade reflects the automaker\'s strength in North America and its expectation that \"improvements Ford has made are likely to be lasting.\" Ford is expected to continue to manage its balance sheet well, Moody\'s said. The rating agency also said it believes Ford can maintain its investment grade rating even in the face of a European downturn. \"Moody\'s believes that Ford has demonstrated its commitment to maintaining sound operating and financial disciplines by preserving a low break-even level; matching production levels to retail demand; limiting the use of incentives and price discounting; capitalizing on the use of global vehicle platforms; and, building healthy supplier relationships,\" the agency said in a statement. Moody\'s cautioned that Ford would have to build its strength outside its North America stronghold before the agency will boost its rating further. \"In order to support a positive outlook or higher rating, Ford will have to demonstrate clear progress in building profitability outside of North America. This would require a sustained turnaround of its European operations and a profitable expansion of its position in China. The company would also have to maintain its solid position in North America and a healthy liquidity profile.\" Moody\'s had ranked the second-largest U.S. automaker\'s debt as junk since August 2005. Ford--helped by deep cost cuts, staff reductions, plant closings, new models and a rebound in industry sales--has produced 12 consecutive profitable quarters through the first three months of 2012. The automaker earned $29.5 billion in the last three years after racking up $30.1 billion in losses from 2006 through 2008. Ford has also pared debt and reinstated a cash dividend. In April, Ford\'s rating was upgraded to investment grade by Fitch Ratings. Standard & Poor\'s still rates the automaker below investment grade. Bill Ford Jr., clearly elated at the move by Moody\'s, announced the news of the upgrade to Ford employees via the automaker\'s in-house public address system, \"which is only ever used for fire drills,\" he said. He described the company\'s decision to mortgage its assets back in 2006 as a \"once-in-a-lifetime decision\" and said he hoped the company would never have to go through anything like it again. \"By definition, today is also a once-in-a-lifetime event, which I couldn\'t be happier about,\" Bill Ford said. He attributed the company\'s comeback to an \"heroic effort by every Ford employee.\" \"When we pledged the Blue Oval, it was enormously emotionally for me and my family,\" Bill Ford said. \"We weren\'t just pledging an asset, we were pledging our heritage. It feels wonderful.\" Asked whether he ever doubted Ford would win back its assets, Ford said: \"No, I said back in the darkest days I was absolutely confident we had the right leadership and the right plan. The only question is whether we had enough time.\" Ford CEO Alan Mulally, 66, said the investment upgrade won\'t change his plans. At the company\'s recent annual meeting, Bill Ford and other directors endorsed Mulally\'s performance and provided no timeline on his retirement. Said Mulally: \"Clearly it is a very significant milestone, but it changes none of my plans to continue to serve this great corporation.\" Mulally described the upgrade as \"a very exciting moment for employees, dealers, suppliers. It\'s way up there on the highlight film.\" Bob Shanks--who succeeded Lewis Booth as Ford CFO on April 1--said the upgrade won\'t have a major impact on the company\'s operations but it will help lower borrowing costs. \"Operationally, it doesn\'t have too much effect,\" Shanks said. \"We had pledged the assets but it hadn\'t affected our operational flexibility. We will see a reduction in our borrowing rates.\" Read more: http://www.autoweek.com/article/20120523/CARNEWS/120529932#ixzz1vm2Yr6uL

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today moody\s boosts ford\s credit rating Arab Today, arab today moody\s boosts ford\s credit rating

 



Arab Today, arab today
Arab Today, arab today Jordan airline suggests flyers 'talk'

GMT 11:59 2017 Friday ,24 March

Jordan airline suggests flyers 'talk'
Arab Today, arab today 5 Crafty Must-Have Limited-Budget Ideas

GMT 17:03 2017 Saturday ,25 March

5 Crafty Must-Have Limited-Budget Ideas
Arab Today, arab today Dozens dead in US-led Syria strikes

GMT 08:35 2017 Thursday ,23 March

Dozens dead in US-led Syria strikes
Arab Today, arab today Former head of Egypt’s syndicate submits appeal

GMT 20:11 2017 Saturday ,25 March

Former head of Egypt’s syndicate submits appeal
View News in Arabic - Auto: أخبار السيارات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Yemen children dream of school

GMT 07:25 2017 Friday ,24 March

Yemen children dream of school
Arab Today, arab today MP submits a petition to dismiss university head

GMT 06:21 2017 Friday ,24 March

MP submits a petition to dismiss university head
Arab Today, arab today Salvage of South Korea's Sewol ferry

GMT 04:51 2017 Friday ,24 March

Salvage of South Korea's Sewol ferry
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Audi RS 5 Coupe acquires new design

GMT 13:22 2017 Thursday ,23 March

Audi RS 5 Coupe acquires new design
Arab Today, arab today Renault Trezor wins design award

GMT 11:56 2017 Tuesday ,21 March

Renault Trezor wins design award
Arab Today, arab today Actress Mervat Amin reveals her role in new series
Arab Today, arab today 2017 already marked

GMT 15:25 2017 Tuesday ,21 March

2017 already marked

GMT 06:04 2017 Thursday ,23 March

Haifa Wahby bets on her new drama show

GMT 22:00 2017 Thursday ,23 March

Number of unwedded girls amounts to 2.5m

GMT 18:57 2017 Tuesday ,21 March

Accessories designer reveals her new collection

GMT 10:34 2017 Tuesday ,21 March

Mexico threatens to ditch US corn imports

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures

GMT 15:06 2017 Saturday ,25 March

Dialysis Supplies Dwindle for Syrians

GMT 07:36 2017 Wednesday ,22 March

US, Britain ban laptops on flights

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons

GMT 19:27 2017 Saturday ,11 March

Boualsof launches "Priestess Kahina" collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday