Ford's credit went even deeper into junk rating.
06-29-2006, 07:45 AM
#1
Senior Member
Thread Starter
Join Date: Mar 2005
Location: Sunny S. California
Posts: 397
Likes: 0
Received 0 Likes
on
0 Posts
03 E500
Ford's credit went even deeper into junk rating.
Why post a Ford related info here? Daimler Chrysler was mentioned in this article as well, although small and for a good laugh.
S&P cuts Ford's credit rating deeper into junk
SAN FRANCISCO (MarketWatch) -- Ford Motor Co.'s stock took a hit Wednesday, pressured as Standard & Poor's pushed the automaker's credit rating deeper into junk status, citing erosion in its key full-size pickup segment amid fierce competition and high gas prices.
<IMG class=pixelTracking height=1 width=1 border=0>F, , ) closed down 18 cents, or 2.8%, at $6.36, touching levels not seen in 13 years earlier in the session.
The ratings agency downgraded $151 billion in Ford debt by one notch, to a B+ rating, and thus put the rating four levels into speculative-grade territory, with a negative outlook.
"Notwithstanding its multiyear plan to turn around the performance of its North American automotive operations, " S&P said, "we expect the company's financial profile to weaken further during 2006 -- a period when the U.S. economy and U.S. light-vehicle sales are robust."
In January, Ford detailed its "Way Forward" restructuring plan, a centerpiece of which is the planned closure of 14 plants by 2012 and the cutting of as many as 30,000 jobs, as the automaker aims at improving its product lineup and slashing costs.
The agency said it was primarily concerned with the full-size pickup segment, which Ford's F-Series has dominated for years and which makes up about a third of total sales. Upcoming models from General Motors (GM : GM
combined with persistently lofty gas prices are the primary concern.
The midsize SUV segment is also cause for worry, S&P said, with Ford Explorer sales off 27.1% for the first five months of the year.
"The ratings could be lowered further if we came to expect that Ford's cash use was to worsen significantly due to further setbacks, whether Ford-specific or stemming from market conditions," the agency said.
Ford will report its June sales results on Monday, with analysts expecting domestic automakers -- particularly GM -- to post lower results than a year ago when employee pricing promotions sparked historic sales levels.
GM offered the groundbreaking program in June 2005. Ford and Chrysler
LOL
S&P cuts Ford's credit rating deeper into junk
SAN FRANCISCO (MarketWatch) -- Ford Motor Co.'s stock took a hit Wednesday, pressured as Standard & Poor's pushed the automaker's credit rating deeper into junk status, citing erosion in its key full-size pickup segment amid fierce competition and high gas prices.
<IMG class=pixelTracking height=1 width=1 border=0>F, , ) closed down 18 cents, or 2.8%, at $6.36, touching levels not seen in 13 years earlier in the session.
The ratings agency downgraded $151 billion in Ford debt by one notch, to a B+ rating, and thus put the rating four levels into speculative-grade territory, with a negative outlook.
"Notwithstanding its multiyear plan to turn around the performance of its North American automotive operations, " S&P said, "we expect the company's financial profile to weaken further during 2006 -- a period when the U.S. economy and U.S. light-vehicle sales are robust."
In January, Ford detailed its "Way Forward" restructuring plan, a centerpiece of which is the planned closure of 14 plants by 2012 and the cutting of as many as 30,000 jobs, as the automaker aims at improving its product lineup and slashing costs.
The agency said it was primarily concerned with the full-size pickup segment, which Ford's F-Series has dominated for years and which makes up about a third of total sales. Upcoming models from General Motors (GM : GM
combined with persistently lofty gas prices are the primary concern.
The midsize SUV segment is also cause for worry, S&P said, with Ford Explorer sales off 27.1% for the first five months of the year.
"The ratings could be lowered further if we came to expect that Ford's cash use was to worsen significantly due to further setbacks, whether Ford-specific or stemming from market conditions," the agency said.
Ford will report its June sales results on Monday, with analysts expecting domestic automakers -- particularly GM -- to post lower results than a year ago when employee pricing promotions sparked historic sales levels.
GM offered the groundbreaking program in June 2005. Ford and Chrysler
LOL
