S&P rates Ford convertibles CCC

Standard & Poor's said it has assigned its CCC issue-level rating and 6 recovery rating to Ford Motor Co.'s $2.5 billion senior unsecured convertible notes due 2016.

Underwriters of the offering have an option to increase the convertible note offering by $375 million, the agency said, adding that it expects Ford to use proceeds to improve liquidity, including paying down a portion of the $10.2 billion drawn under its secured revolving credit facility due 2011.

According to S&P, Ford recently announced plans to seek an amendment from its secured lenders that would reduce commitments to the revolving facility by up to 25% while extending the maturity of that facility to 2013.

On Nov. 3, the agency said it raised the corporate credit ratings on Ford and Ford Motor Credit Co. LLC to B- from CCC+. The upgrades reflected, among other factors, Ford's announcement of better-than-expected third-quarter results, including a return to positive free operating cash flow in its global automotive operations.

© 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.