S&P CUTS FORD’s CREDIT RATING. Standard & Poor’s
Ratings Services reduced its long-term credit ratings for
Ford Motor Co., Ford Motor Credit Co. and Hertz Corp. to
BBB-, which is one step above “junk” grade.
S&P also reduced its short-term ratings from A-3 to A-2
and says it expects only “limited improvement” in Ford’s
profitability and cash flow over the next few years.
But the agency also soothed jittery investors by giving
Ford a “stable” outlook and saying it expects no further
reduction in the company’s ratings over the next two
years—even if cash flow and profitability don’t improve or
if Ford posts minor losses.
Ford says the rating downgrade fails to reflect the
company’s progress and current condition.
Last month S&P reduced its rating for Daimler-
Chrysler from BBB+ to BBB and left General Motors
unchanged at BBB.
Ratings Services reduced its long-term credit ratings for
Ford Motor Co., Ford Motor Credit Co. and Hertz Corp. to
BBB-, which is one step above “junk” grade.
S&P also reduced its short-term ratings from A-3 to A-2
and says it expects only “limited improvement” in Ford’s
profitability and cash flow over the next few years.
But the agency also soothed jittery investors by giving
Ford a “stable” outlook and saying it expects no further
reduction in the company’s ratings over the next two
years—even if cash flow and profitability don’t improve or
if Ford posts minor losses.
Ford says the rating downgrade fails to reflect the
company’s progress and current condition.
Last month S&P reduced its rating for Daimler-
Chrysler from BBB+ to BBB and left General Motors
unchanged at BBB.