UK:S&P says Ford ratings may fall further in future - Ford Forums - Mustang Forum, Ford Trucks, Ford Focus and Ford Cars
LinkBack Thread Tools Display Modes
post #1 of 1 (permalink) Old 06-22-05, 07:18 AM Thread Starter
Registered User
Stacy94PGT's Avatar
Join Date: Feb 2001
Location: The Hills of North Georgia,USA
Posts: 7,859
UK:S&P says Ford ratings may fall further in future

S&P says Ford ratings may fall further in future

Automotive News

LONDON -- Standard & Poor's said on Wednesday it would take no immediate action on Ford Motor Co.'s BB+ credit rating after Tuesday's profit warning, but said it was now more likely the rating could fall in the future.

"We believe there is now an increased likelihood that the ratings ... will ultimately be downgraded further," the ratings agency said in a statement.

S&P rates Ford BB+, the highest "junk" rating, with a negative outlook.

Ford on Tuesday cut full-year earnings guidance to $1 to $1.25 per share from a previous range of $1.25 to $1.50.

"We interpret the current guidance to mean that Ford's North American automotive operations will generate a substantial loss this year, reflecting its vulnerability to cost, market share, and pricing pressures, even though overall industry demand remains robust," S&P said.

The agency said it was particularly concerned about weak sales in the shrinking mid- and large-sized sport-utility vehicles segments.

However, S&P said Ford had substantial liquidity, which would be enhanced if cash could be raised from car rental subsidiary Hertz Corp., which is planning an initial public offering.

S&P cut Ford's rating to "junk" in May, but Moody's Investors Service and Fitch Ratings still have investment-grade ratings on the company.

Moody's rates Ford at Baa3, one notch above "junk" status, while Fitch is one notch higher at BBB.

My first car was a 67 Mustang Coupe, 2nd one was a 67 Cougar XR-7, 3rd one was a 66 Mustang Coupe. Why did I get rid of these cars for ? I know why, because I'm stupid, stupid, stupid.

My next Ford.....
Stacy94PGT is offline  
Sponsored Links

  Ford Forums - Mustang Forum, Ford Trucks, Ford Focus and Ford Cars > Fordforums Community > Latest Ford News and Racing News > Ford Worldwide News
Gear in this thread - Powered by O'Reilly Auto Parts

Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
Thread Tools
Show Printable Version Show Printable Version
Email this Page Email this Page
Display Modes
Linear Mode Linear Mode

Posting Rules  
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On

For the best viewing experience please update your browser to Google Chrome