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Moody's raises rating on Ford - AutoNews.com

Ford Credit may get hike soon, too


September 4, 2009 - 12:01 am ET

NEW YORK (Reuters) -- Citing intensive restructuring that has boosted Ford Motor Co.'s viability, Moody's Investors Service on Thursday raised its rating on the automaker. Moody's also said it may raise the ratings on Ford's finance arm, Ford Motor Credit Co.

The rating action affects about $25 billion of debt, Moody's said.

"The period of greatest risk in Ford's restructuring has passed," Moody's said in a statement. The rating service also said Ford should be able to fund its cash burn until the industry recovers around 2011.

Moody's raised Ford's corporate family rating by two notches to Caa1, seven steps below investment grade. It said it may raise Ford Credit's senior unsecured rating, now Caa1.

Ford, the only large U.S.-based automaker that has not restructured in bankruptcy in 2009, has been raising production targets after the government's clunkers incentive program dramatically increased sales.
 
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