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Blue Oval no longer in hock as Ford credit rating upgraded
Filed under: Ford, Earnings/Financials
Moody's upgraded Ford's credit rating to investment grade today, the final step for the company to be able to reclaim its Blue Oval. Ford had offered its globally recognized trademark as part of a 2006 loan package. According to the Detroit Free Press, the collateralized logo and the rest of Fod's assets and intellectual property would not return to the automaker until it achieved an investment-grade credit rating with at least two of the three major agencies. Last month, Ford's credit was upgraded by Fitch.
At the time the loan was issued, the move was viewed as bold and risky, as Ford literally bet the farm that it could pay back the $23.5 billion. But as it turned out, the automaker's head start on restructuring allowed it to weather the financial crisis and resultant industry downturn in 2008 without declaring bankruptcy and needing government intervention like its cross-town rivals.
The upgrade from Moody's is said to potentially help Ford by lowering its borrowing costs, and certainly having its assets back should allow everyone in Dearborn to sleep peacefully tonight.
Scroll down to read Ford's official statement.Continue reading Blue Oval no longer in hock as Ford credit rating upgraded
Blue Oval no longer in hock as Ford credit rating upgraded originally appeared on Autoblog on Tue, 22 May 2012 18:30:00 EST. Please see our terms for use of feeds.
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Moody's upgraded Ford's credit rating to investment grade today, the final step for the company to be able to reclaim its Blue Oval. Ford had offered its globally recognized trademark as part of a 2006 loan package. According to the Detroit Free Press, the collateralized logo and the rest of Fod's assets and intellectual property would not return to the automaker until it achieved an investment-grade credit rating with at least two of the three major agencies. Last month, Ford's credit was upgraded by Fitch.
At the time the loan was issued, the move was viewed as bold and risky, as Ford literally bet the farm that it could pay back the $23.5 billion. But as it turned out, the automaker's head start on restructuring allowed it to weather the financial crisis and resultant industry downturn in 2008 without declaring bankruptcy and needing government intervention like its cross-town rivals.
The upgrade from Moody's is said to potentially help Ford by lowering its borrowing costs, and certainly having its assets back should allow everyone in Dearborn to sleep peacefully tonight.
Scroll down to read Ford's official statement.Continue reading Blue Oval no longer in hock as Ford credit rating upgraded
Blue Oval no longer in hock as Ford credit rating upgraded originally appeared on Autoblog on Tue, 22 May 2012 18:30:00 EST. Please see our terms for use of feeds.
Permalink | Email this | Comments
More...