Moody's downgrades Ford

Moody's Investors Service said it lowered Ford Motor Co.'s corporate family and probability-of-default ratings to Caa1 from B3, issuer rating to Caa2 from Caa1, senior secured bank credit facility to B1 (LGD2, 15%) from Ba3 (LGD2, 19%) and senior unsecured bonds to Caa2 (LGD4, 65%) from Caa1 (LGD4, 62%). The speculative-grade liquidity rating is unchanged at SGL-3.

The agency also lowered the senior unsecured bonds of Ford Capital BV and Ford Holdings, Inc. to Caa2 (LGD4, 65%) from Caa1 (LGD4, 62%); the preferred stock of Ford Motor Co. Capital Trust II to Caa3 (LGD6, 94%) from Caa2 (LGD6, 93%); and the senior unsecured debt of Ford Motor Credit LLC and FCE Bank plc as well as the backed senior unsecured debt of Ford Credit Australia Ltd., Ford Credit Canada Ltd. and Ford Motor Credit Co. of New Zealand Ltd. to B3 from B2.

The outlook is negative.

The downgrade reflects Moody's expectation that the severity and duration of the erosion in the U.S. automotive sector will limit the company's ability to stem its pace of operating cash consumption. Moreover, the agency remains concerned that the ongoing fragility in the overall economy and financial markets could contribute to annual shipments materially below 12.5 million units during 2009.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.