US:S&P cuts Ford, Ford Credit deeper into junk status - Ford Forums - Mustang Forum, Ford Trucks, Ford Focus and Ford Cars
LinkBack Thread Tools Display Modes
post #1 of 1 (permalink) Old 06-28-06, 11:23 AM Thread Starter
Registered User
Stacy94PGT's Avatar
Join Date: Feb 2001
Location: The Hills of North Georgia,USA
Posts: 7,859
US:S&P cuts Ford, Ford Credit deeper into junk status

S&P cuts Ford, Ford Credit deeper into junk status


NEW YORK -- Standard & Poor's on Wednesday cut its rating on Ford Motor Co. and its finance arm further into junk status, saying it expects 2006 to be a more difficult year for the No. 2 U.S. automaker than previously expected.

Ford, in the midst of a turnaround plan, is closing 14 plants and cutting up to 30,000 factory jobs as it tries to stem North American losses.

S&P said it is concerned about weakness in the mid-sized SUV segment after Ford's Explorer sales fell 27.1 percent in the first five months of the year. The Explorer accounts for about 9 percent of Ford brand sales, S&P said.

Sales of full-sized pickups are another concern because of persistently high gasoline prices and competition from new models from rivals General Motors and Toyota Motor Corp., S&P said.

S&P cut its corporate credit ratings on Ford and Ford Motor Credit Co. to "B-plus," four steps below investment grade, from "BB-minus." The outlook is negative, meaning another cut is likely over the next two years.

Ford's 7.45 percent bonds due in 2031 fell to 70.375 cents on the dollar, down from 70.438 cents on Tuesday, according to MarketAxess.

Five-year credit default swaps on Ford were unchanged after the downgrade at around 970 basis points, or $970,000 per year to insure $10 million in debt. Swaps of Ford's finance unit, Ford Motor Credit Co., were also unchanged at around 525 basis points.

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

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