Ford Reclaims Rights to Blue Oval

Ford Motor Co. has reclaimed assets pledged in 2006 to borrow $23.5 billion including its headquarters building and blue oval trademark.

The move was made possible on Tuesday when Moody's Investors Service raised its Ford debt rating by one notch to Baa3, its lowest investment grade. Fitch Ratings made a similar move in April.

The 2006 loan gave Ford the liquidity to avoid joining Chrysler and General Motors in bankruptcy and government bailouts in 2009. But under the deal's terms, the company needed to win an investment-grade rating from at least two of the three major U.S. ratings agencies to reclaim the collateral.

Regaining the company logo is a symbolic and emotional step for Ford employees and family members. Chairman Bill Ford Jr., the founder's great-grandson, calls retaining the oval "one of the best days that I can remember."

The investment-grade rating also will allow Ford to borrow at lower rates. Institutional investors that are only permitted to own investment-grade bonds will now be able to buy Ford bonds, thus widening the company's investor pool. Moody's also upgraded Ford Motor Credit Co. to the same rating as its automaker parent.

Standard & Poor's Ratings Services till ranks Ford debt one step into junk-bond territory. The company had investment grade ratings from all three American agencies until 2005.