Autoblog http://www.autoblog.com Autoblog http://www.blogsmithmedia.com/www.autoblog.com/media/feedlogo.gif Autoblog http://www.autoblog.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Ford no longer junk at Fitch as bonds return to investment grade]]>http://www.autoblog.com/2012/04/25/ford-no-longer-junk-at-fitch-as-stock-returns-to-investment-grad/http://www.autoblog.com/2012/04/25/ford-no-longer-junk-at-fitch-as-stock-returns-to-investment-grad/http://www.autoblog.com/2012/04/25/ford-no-longer-junk-at-fitch-as-stock-returns-to-investment-grad/#commentsFiled under: ,



No doubt Ford has seen the light shining at the end of its turnaround plan for a while, but now The Blue Oval is getting so close to the daylight it might even be able to smell the fresh air. By the end of 2005, Ford bonds were rated so low by the three major ratings agencies they was floating in the cistern below the basement of junk status. After Mulally came onboard, the company put up everything to get the money to work his plan, from the company logo to its real estate. In order to get it back, two of the three agencies need to rate Ford bonds as investment grade, and one, Fitch, has just done so.

Fitch has certified Ford bonds as BBB-, the first investment-grade level, and issued a stable outlook for the company and its finance arm. Ford remains just one step below investment worthy with both Standard & Poor's and Moody's, but with "a solid Q1" predicted by by Citigroup and Morgan Stanley analysts (they expect earnings to match Q1 2011 in spite of European and Asia-Pacific sales doldrums), the final turn might not be far away.

When it does, Ford will have achieved what it laid out as Job One for 2012. As well as getting its assets out of hock, Dearborn will also greatly reduce its borrowing costs. Ford's head of investor relations, Michael Seneski, vowed in December that Ford would return to investors' good graces by showing "authoritative and highly credible insight into our automotive business and Ford Credit." We're of the opinion that an increasing flow of good products haven't hurt, either.

Ford no longer junk at Fitch as bonds return to investment grade originally appeared on Autoblog on Wed, 25 Apr 2012 13:01:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>fitchfordford investmentford junkford loanford stockmoodysstandard and poorsstocksWed, 25 Apr 2012 13:01:00 EST http://www.autoblog.com/feed/20223714/article-comments.xml http://www.autoblog.com/feed/2012/04/25/ford-no-longer-junk-at-fitch-as-stock-returns-to-investment-grad/20223714/article-detail.xml 20223714 http://www.blogcdn.com/www.autoblog.com/media/2012/04/alan-mulally-at-stock-exchange_thumbnail.jpg http://www.blogcdn.com/www.autoblog.com/media/2012/04/alan-mulally-at-stock-exchange.jpg <![CDATA[Ford's Big Goal in 2011: Get out of junk status, lower loan rates]]>http://www.autoblog.com/2010/12/31/fords-big-goal-in-2011-get-out-of-junk-status-lower-loan-rate/http://www.autoblog.com/2010/12/31/fords-big-goal-in-2011-get-out-of-junk-status-lower-loan-rate/http://www.autoblog.com/2010/12/31/fords-big-goal-in-2011-get-out-of-junk-status-lower-loan-rate/#commentsFiled under: ,

Ford grille closeup

2010 was a banner year for Ford Motor Company. Market share and profits were as good as they've been in years, and there is genuine buzz surrounding the Blue Oval's cars and trucks. Heck, even Ford's stock has been a monumental success. But not all that glitters is gold, as Ford is still mired in junk bond status, which in turn makes it more expensive to borrow money. That makes it more pricey for Ford to offer incentives to customers, and lease terms are less attractive than they would otherwise be.

K.R. Kent, Ford's new executive director of investor relations, is charged with getting Ford out of Junk status. Automotive News reports that Ford has been in junk status since 2005 and is currently four grades below junk status after being upgraded by two levels back in August. Ford CFO Lewis Booth admits that the company still has "a lot of steps to go before we get to investment grade." Making the matter more urgent for Ford is the fact that Ally Financial, the finance arm for General Motors and Chrysler, became a bank holding company in the second quarter of 2009. Since that time, AN says that it has been cheaper for Ally to secure loans than Ford Credit.

We're thinking that Ford has a big job in the year ahead, and getting out of junk status will likely take improved auto sales and continued quarterly profits. Booth says Ford will reach its junk-free goal by showing the investment community "authoritative and highly credible insight into our automotive business and Ford Credit."

[Source: Automotive News - sub. req.]


Ford's Big Goal in 2011: Get out of junk status, lower loan rates originally appeared on Autoblog on Fri, 31 Dec 2010 10:01:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>ally financialblue ovalford financesford junk statusford loanford stockjunk bondjunk statuskr kent junk status fordFri, 31 Dec 2010 10:01:00 EST http://www.autoblog.com/feed/19782234/article-comments.xml http://www.autoblog.com/feed/2010/12/31/fords-big-goal-in-2011-get-out-of-junk-status-lower-loan-rate/19782234/article-detail.xml 19782234 http://www.blogcdn.com/www.autoblog.com/media/2010/12/ford-logo-explorer_thumbnail.jpg http://www.blogcdn.com/www.autoblog.com/media/2010/12/ford-logo-explorer.jpg <![CDATA[UAW wants executive pay to be limited]]>http://www.autoblog.com/2008/12/01/uaw-wants-executive-pay-to-be-limited/http://www.autoblog.com/2008/12/01/uaw-wants-executive-pay-to-be-limited/http://www.autoblog.com/2008/12/01/uaw-wants-executive-pay-to-be-limited/#commentsFiled under: , , , , ,



The president of the United Auto Workers union, Ron Gettelfinger, said in a recent CNN interview that U.S. automakers need to tell Congress they will limit corporate pay, bonuses and severance packages in return for more government loans. Gettelfinger also said that the Detroit Three only need the loans to hold them over during these tough times. While the first statement from the union's top player seems like basic common sense, the second seems highly optimistic... especially when one considers the size of the industry and the depth of its issues. While no single event (or loan, for that matter) will likely turn around the downslide, all of those affected by the auto industry's potential demise will be interested in tomorrow's events. That's because Dec. 2 is the day House and Senate leaders told the automakers that they need to submit a "credible restructuring plan" that's convincing enough to get Congress to open its wallet when it reconvenes next week.

[Source: Reuters]

UAW wants executive pay to be limited originally appeared on Autoblog on Mon, 01 Dec 2008 12:32:00 EST. Please see our terms for use of feeds.

Permalink | Email this | Comments]]>AutomakerBailoutBig ThreeBigThreeBillion dollarBillionDollarChrysler loanChryslerLoanDetroit 3Detroit ThreeDetroit3DetroitThreeFord loanFordLoanGM LoanGmLoanLoanUAWMon, 01 Dec 2008 12:32:00 EST http://www.autoblog.com/feed/1386797/article-comments.xml http://www.autoblog.com/feed/2008/12/01/uaw-wants-executive-pay-to-be-limited/1386797/article-detail.xml 1386797 http://www.blogcdn.com/www.autoblog.com/media/2008/12/detroit_3_450_thumbnail.jpg http://www.blogcdn.com/www.autoblog.com/media/2008/12/detroit_3_450.jpg <![CDATA[Ford delays car payments for victims of Iowa tornado]]>http://www.autoblog.com/2008/06/02/ford-delays-car-payments-for-victims-of-iowa-tornado/http://www.autoblog.com/2008/06/02/ford-delays-car-payments-for-victims-of-iowa-tornado/http://www.autoblog.com/2008/06/02/ford-delays-car-payments-for-victims-of-iowa-tornado/#commentsFiled under: , ,



Car payments are way down on the list of concerns for victims of the recent tornados in Iowa. Thus, Ford Motor Credit has introduced a Disaster Relief Program that will offer grace from one or two monthly payments to qualified customers. Lease customers, or buyers who financed purchases through Ford Credit or other brand-specific financing arms (Jaguar Credit, Land Rover Capital, Mazda American Credit, Primus, or Volvo Car Fiance) will be notified by mail about how to register. Once registered, customers can postpone one or two months worth of payments, allowing them to focus on putting their lives back together again before worrying about the next check to Ford. We expect other automakers to follow Ford's lead this week as the extent of damage caused by Iowa's strongest tornadoes in 32 years is fully revealed.

[Source: Ford Motor Credit, Photo: NOAA]

Continue reading Ford delays car payments for victims of Iowa tornado

Ford delays car payments for victims of Iowa tornado originally appeared on Autoblog on Mon, 02 Jun 2008 07:58:00 EST. Please see our terms for use of feeds.

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