S&P Takes Positive Outlook on Ford, Investment-Grade Rating Looms
Ford Motor Co. (NYSE: F) is getting a positive review from Standard & Poor’s this Friday afternoon. The ratings agency has changed the outlook to Positive and has maintained Ford’s BB+ credit rating. The move might not sound like much,…
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What S&P highlighted was the strength of the North American auto market and Ford’s performance with positive cash flow and profitability. S&P even noted in the outlook, “We belive Ford will act with increasing decisiveness and commitment to restructure Europe to profitability in the face of likely several more years of weak vehicle sales in Europe.”
Today’s action hints at raising the rating to investment grade (BBB-) if Ford can show that it can improve the balance of profitability across all of its regions. Ford shares are down by 0.25% at $9.32 so far today against a 52-week range of $8.82 to $13.05. Rival car-maker General Motors Company (NYSE: GM) is seeing its shares trade far worse today with a drop of 1.4% to $20.36 against its 52-week range of $18.72 to $27.68.
JON C. OGG
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Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
