Ford On Road Back to Investment-Grade Credit Rating
Ford avoided bankruptcy and a federal bailout all right, but the automaker had to borrow a lot of money to do keep afloat. As a result, it lost its investment-grade credit rating back in 2005 and has carried a junk bond rating ever since.
But that could change any day now. Fitch Ratings upgraded its rating for Ford from BB+, which denotes high-yield junk status, to BBB-, which is just over the threshold into investment-grade status. If Ford gets a similar boost from Standard & Poor’s or Moody’s, its credit rating will officially be considered restored to investment-grade — and that would be a draw for investors interested in lower-risk bonds.
Tags: Back, Credit, Ford, InvestmentGrade, Rating, Road
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