Debt Rating Upgrade Fuels Ford Resurgence?

Discussion in 'OT Driven' started by TriShield, Jan 12, 2010.

  1. TriShield

    TriShield Super Moderator® Super Moderator

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    By Cammy Corrigan on January 12, 2010

    Despite Ford’s surging stock price, new models and rising customer confidence there’s always been that one bone of contention which had divided peoples’ opinion: debt. $35 billion of it.

    Though they’ve tried to restructure it, selling new shares and raising cash throughout 2009, it’s still a problem. But apparently it’s becoming less of a problem. ABC news report that Fitch Ratings upgraded their assessment of the risk of Ford defaulting on its debt obligations, basing their optimistic view on a better economic environment, the company’s stronger margins, increased market share and cash position. Oh yes, and a small matter of $5.9b in federal DOE retooling loans [full Fitch release here].

    Ford’s Credit unit also received a hearty slap on the back from Fitch because of its improving access to capital, as its rating was raised from “CCC” to “B-”. But let’s not get carried away. While this is a positive step in Alan Mulally’s vision of a sustainable Ford, the rating still qualifies Ford debt as non-investment grade.
     
  2. ionicwings

    ionicwings Active Member

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  3. TriShield

    TriShield Super Moderator® Super Moderator

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  4. Jackie Treehorn

    Jackie Treehorn Active Member

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    lol "Your debt is upgraded!"

    I think we've all learned by now that Fitch, Moodys, S&P and the like don't have a fucking clue.

    See AAA rated MBS...oh right.
     
  5. BLoG

    BLoG Scented Meat

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    Ford is win
     
  6. dbman96

    dbman96 Active Member

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    Do you have any idea how many times I had to read that sentence to find a verb?
     
  7. loading

    loading OT Supporter

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    Ford is doing everything right lately
     
  8. vansamirin

    vansamirin Active Member

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    The rating agencies can pretty much make up numbers and not be held accountable
     
  9. vansamirin

    vansamirin Active Member

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    I bet whoever decided to not take bailout money got a pretty nice bonus.
     
  10. slowbird

    slowbird I am the son, and the heir, of a shyness that is c OT Supporter

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  11. Dan Fielding

    Dan Fielding Your place or mine?

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    What would happen to Ford if it wasn't for Mulally? :o
     
  12. TriShield

    TriShield Super Moderator® Super Moderator

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  13. TriShield

    TriShield Super Moderator® Super Moderator

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    Ford family out, government and UAW in. :hs:
     
  14. BLoG

    BLoG Scented Meat

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    the transit connect is baller as fuck
     
  15. Bona Fide

    Bona Fide Guest

    It's a strange time when we applaud a company for having better debt. Or, better default risk to be more precise.
     
  16. Bona Fide

    Bona Fide Guest

    Go Ford. I want them to be around long enough for the new Fiesta, Focus, and Mondeo to make it to market. :o
     
  17. Dan Fielding

    Dan Fielding Your place or mine?

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    Pretty much. I'm glad we have an example that is surviving although that isn't saying much...yet.
     
  18. CopenKagan

    CopenKagan OT Supporter

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