From all appearances, Ford Motor Company feels it will need a well-baited hook in order to attract investors to its most recent issue of bonds. As such, the Blue Oval crew is offering $2.5 billion with rates as high as 10.75 percent - a record for the company. Analysts state that this is "an expensive way" for the company to hold onto its $21.2B in cash, even as its prepares for yet another round of downsizing. Ford itself confesses that selling credit is currently "a little
- Eric Bryant
- May 8, 2006
Credit rating agency Moody's is said to be considering another downgrade of General Motors' debt rating, which is already languishing six levels below junk-bond level. The potential move is said to be a reaction to GM's latest move to replace a $5.6B line of credit, which may require GM to pledge some of its assets to secure. Such a move would result in fewer assets available to unsecured creditors in the event of a bankruptcy.
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