US:Moody's cuts Ford's ratings deeper into junk
Moody's cuts Ford's ratings deeper into junk
Ford Motor Credit also moved into junk status
NEW YORK -- Moody's Investors Service on Wednesday cut its ratings on Ford Motor Co. deeper into junk territory, saying the automaker may remain under stress through 2007 despite restructuring efforts.
Moody's also cut its ratings on Ford's finance arm, Ford Motor Credit, to junk status from investment grade. Most of Ford's $142 billion of consolidated debt is issued by Ford Credit.
Ford has seen its profit margins squeezed by fierce competition from foreign rivals and a slowdown in sales of large sport utility vehicles due to high gasoline prices. Ford's key North American operations lost $1.2 billion during the third quarter before taxes and excluding special items.
Moody's cut its long-term rating on Ford by two notches to "Ba3," the third-highest junk rating, from "Ba1." It cut Ford Motor Credit's ratings by two notches to "Ba2" from "Baa3." The rating outlooks on Ford and Ford Credit are negative.
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.....