Moody’s Investors Service raised its ratings on both Ford Motor Co. and the company’s finance arm by one notch on Wednesday. It is also reviewing the ratings for further possible upgrade.
Ford Motor Credit Co.’s senior debt rating moves to B1 from B2, while Ford’s Corporate Family Rating and Probability of Default Rating move from B3 to B2.
“The upgrade of Ford’s long-term ratings anticipates that the company’s restructured business model will generate significantly improved operating and financial performance,” Moody’s said. “The strength of this model is supported by a robust new-product program, a more disciplined approach toward production levels and incentives, the expanding cost benefits associated with the new UAW agreement, and solid progress in globalizing platforms and product offerings.”
Moody’s said this model is generating market share gains in the United States, healthy price realization, and operating performance which is stronger than what the rating agency previously anticipated.
Ford’s senior unsecured debt rating moves to B3 from Caa1, its trust preferred to Caa1 from Caa2, and Speculative Grade Liquidity rating to SGL-2 from SGL-3. Also raised is Ford Credit’s senior debt rating to B1 from B2.