Ford sees great options to return to an investment grade

Article by Christian Andrei, on August 29, 2010

As Ford Motor Co.'s financial results continue to improve, CEO Alan Mulally sees "great options" to improve its balance sheet and return to an investment-grade credit rating.

A solid profit is expected in 2010 while for 2011 and beyond, Mulally thinks that profits would be greater based on cost savings from using common global platforms, an increasing market share and better pricing.

From a meeting where Mulally was addressing analysts, we learned that the company's No. 1 strategy is to continually improve operational performance. 

Mulally said that when Ford pursues this goal, it is able to accelerate [balance sheet] improvement and it sees options open up to it. He added that Ford targets being able to get back to investment grade.

In 2005, Moody's Investors Service and Standard and Poor's lowered Ford's status to junk. In early May, Moody's raised Ford to B1, its fourth level below investment grade.

In April, Standard & Poor's maintained its B-minus credit rating on Ford, six notches below investment grade. However, Standard & Poor's revised its outlook to positive from stable indicating a better than a one-in-three chance of upgrade for the next year.

Topics: ford, investment

If you liked the article, share on:


Login or Create new account to add a comment!


More than three decades ago, the DeLorean DMC-12 was produced by the DeLorean Motor Company. However, production was stopped due to issues within the company. The car itself was decent...
by - October 27, 2016
Tesla is making sure that all models under production will receive the necessary advanced hardware that will allow them to be autonomously driven. The fitment of these advanced hardware to...
by - October 27, 2016
Wondering how fast the 2017 Chevrolet Camaro ZL1 in actual driving? To provide customers a good idea on how fast the 2017 Camaro ZL1 could really get, Chevrolet recently had...
by - October 27, 2016
So, it is official! The new Honda Clarity FCV has the longest verified range of any zero-emissions vehicle currently on the road in the United States. One of the main...
by - October 27, 2016
Many have been anticipating Mercedes-Benz Vans’ newest luxury pickup truck, the X-Class. While Mercedes-Benz has yet to reveal the official production version of the X-Class, it was kind enough to...
by - October 27, 2016