Ford (F) Gets Back Its Investment Grade Rating and the Ford Blue Oval
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After years of restructuring its balance sheet, Ford (NYSE: F) got back its investment grade rating at Moody's Tuesday and with it the Blue Oval logo, which the automaker mortgaged in the past.
Moody's Investors Service said Tuesday afternoon that it raised the senior unsecured ratings of Ford Motor Company to Baa3 from Ba2 and Ford Motor Credit Company LLC (Ford Credit) to Baa3 from Ba1.
"The upgrade of Ford recognizes the strength of the company's position in North America, its robust liquidity position, and our expectation that the company will continue to embrace sound operating and financial disciplines," Moody's said. "We believe that these strengths will enable Ford to maintain an investment grade profile in the face of the sector's ongoing cyclicality and weakness in the European market."
The upgrade, the second since April, releases all pledge collateral including Ford Blue Oval.
In 2006, Ford pledged the Ford Blue Oval along with other domestic assets to secure $23.5 billion in liquidity, consisting of $18.5 billion of senior secured debt and credit facilities and $5 billion of unsecured convertible debt.
The liquidity provided by those loans allowed the company to revamp its vehicle line-up and return to profitability. Ford was the the only Big 3 U.S. automaker not to get a government bailout during the credit crisis.
"The Ford Blue Oval is back where it belongs with the Ford family of 166,000 employees around the world," said Chairman Bill Ford. "This is a great day for us and is the result of several years of hard work and progress by everyone associated with Ford."
Moody's Investors Service said Tuesday afternoon that it raised the senior unsecured ratings of Ford Motor Company to Baa3 from Ba2 and Ford Motor Credit Company LLC (Ford Credit) to Baa3 from Ba1.
"The upgrade of Ford recognizes the strength of the company's position in North America, its robust liquidity position, and our expectation that the company will continue to embrace sound operating and financial disciplines," Moody's said. "We believe that these strengths will enable Ford to maintain an investment grade profile in the face of the sector's ongoing cyclicality and weakness in the European market."
The upgrade, the second since April, releases all pledge collateral including Ford Blue Oval.
In 2006, Ford pledged the Ford Blue Oval along with other domestic assets to secure $23.5 billion in liquidity, consisting of $18.5 billion of senior secured debt and credit facilities and $5 billion of unsecured convertible debt.
The liquidity provided by those loans allowed the company to revamp its vehicle line-up and return to profitability. Ford was the the only Big 3 U.S. automaker not to get a government bailout during the credit crisis.
"The Ford Blue Oval is back where it belongs with the Ford family of 166,000 employees around the world," said Chairman Bill Ford. "This is a great day for us and is the result of several years of hard work and progress by everyone associated with Ford."
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