Fitch Hikes Ford’s Credit Rating
Fitch Ratings has raised its credit rating for Ford Motor Co. and its Ford Motor Credit Co. finance arm by one notch to “B,” which is five steps below investment grade.
The ratings agency says it expects the company to improve this year because of the global economic recovery, a competitive vehicle lineup and lower costs. Fitch says it believes stronger cash flow will allow Ford to shrink its $31 billion of automotive debt. The agency says near-term challenges include rising materials costs, industry overcapacity and the return of heavy incentive spending in the U.S.
Moody’s Investors Service boosted Ford’s rating by one notch last month, also to a level five rungs below investment grade.