US:Ford plants' loss may impact $320 million in cities' bonds
Ford plants' loss may impact $320 million in cities' bonds
From Bloomberg News
Ford Motor Co.'s plan to close four U.S. factories by 2008 may affect $320 million of municipal bonds issued by cities and school districts near those facilities, Moody's Investors Service said in a report.
In addition to the one in Wixom, the plants slated to close are near Batavia, Ohio; St. Louis and Atlanta. The plants, among 14 that Ford said it would close over the next six years, employ about 6,740 people, Moody's said.
For now, Moody's is maintaining the current credit rankings of Wixom. Ratings will hinge on how the loss of jobs and tax revenue is weathered.
Ford said on Jan. 23 it plans to close 14 factories in North America and eliminate as many as 30,000 jobs over six years to try to stem losses at the Dearborn-based automaker. Ford also is to close a plant in Windsor, Ontario, and has yet to identify the nine additional plants to close.
A change in rating, according to Moody's, would affect $31.8 million of bonds issued by Wixom.
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.....