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Moody's upgrades credit ratings on Ford and its financing division

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Moody's upgrades credit ratings on Ford and its financing division

BLOOMBERG NEWS

Ford and its finance arm had their credit ratings upgraded one level by Moody's Investors Service because of demand for the auto company's new models and a lower cost structure.

Ford was raised to B1, the fourth level below investment grade, New York-based Moody's said Tuesday in a statement.

The upgrade, the first since March 17, includes the Ford Motor Credit finance unit and affects about $65 billion in debt. Moody's outlook on Ford is "stable."

"Ford now has a healthy and sustainable operating model," Bruce Clark, Moody's senior vice president, said in the statement. "As demand in the U.S. continues to recover through 2011, Ford is well-positioned to generate stronger operating performance and cash flow."

The automaker earned $2.7 billion last year, reversing three years of losses.

Ford's 7.45% bonds due July 2031 rose 0.5 cent to 88.5 cents on the dollar Tuesday in New York, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.

Ford shares fell 40 cents, or 3.4%, to $11.55 Tuesday.

The company's shares have risen 15% this year.

link:

http://www.freep.com/article/20100519/BUSINESS01/5190320/1210/Moodys-upgrades-credit-ratings-on-Ford-and-its-financing-division

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Moody’s improves Ford credit rating

05/19/2010, 9:07 AM BY ANDREW GANZ

Thanks to continued demand for the automaker’s new models, as well as its reduced cost structure, Moody’s Investment Services says that it will increase Ford Motor Company and its financial arm’s credit rating by one level.

The automaker has been raised to B1, four levels below investment grade. Ford’s credit rating was last raised on March 17 as the rating service continues to view the automaker as “stable.”

“Ford now has a healthy and sustainable operating model,” Moody’s senior vice president Bruce Clark said in a statement issued to the media. “As demand in the U.S. continues to recover through 2011, Ford is well-positioned to generate stronger operating performance and cash flow.

Moody’s says that it has more confidence in Ford’s ability to sell more products with a higher profit margin thanks to increased vehicle demand and drastic internal cost cutting.

link:

http://www.leftlanenews.com/moodys-improves-ford-credit-rating.html

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