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Moody’s Hikes Credit Rating for Ford
Moody’s Investors Service has raised its credit rating for Ford Motor Co. and its Ford Credit finance subsidiary one step further into investment grade—its highest rating for the company since 2005.
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Moody’s Investors Service has raised its credit rating for Ford Motor Co. and its Ford Credit finance subsidiary one step further into investment grade—its highest rating for the company since 2005.
The upgrade from Baa3 to Baa2 puts Ford two notches above junk status. Moody’s says Ford earned the gain by amassing the financial and operational resources to recover from “the stress that it will eventually face.”
Moody’s concurs with Ford CEO Mark Fields that the carmaker’s results for 2015 was a “breakthrough” performance. Moody’s last upgrade for Ford was in 2012.
The higher rating comes as Wall Street continues its gloomy view that the auto industry has reached a cyclical growth peak. Investors also believe the industry faces seismic challenges from nonautomotive tech companies such as Google and alternate transport services such as Uber.
The other two rating services, Fitch and Standard & Poor’s, continue to hold Ford at their lowest investment grades.
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