-->Lex: Ford
Published: Nov 12 2003 18:44 | Last Updated: Nov 12 2003 18:44

Ford's credit outlook may be stable for now. If only the same could be said of its sales outlook. To the relief of the credit market, S&P downgraded Ford's long-term credit rating to one notch above junk, but assigned a stable rather than negative outlook. With Ford the second-largest issuer of US corporate bonds, investors feared the prospect of its becoming a fallen angel and sparking forced selling. The removal of this threat is a significant positive for the corporate bond market.

Ford's credit spreads tightened sharply as S&P said that, even if earnings failed to improve, or minor losses were incurred over the next two years, the rating would not necessarily be in jeopardy. Ford has been given time to allow restructuring efforts and new products to revive its fortunes.

Yet S&P has offered these assurances on Ford before and then later moved to downgrade its rating. An outlook statement is only an assessment of the probability that a further rating change will be required. Deteriorating performance at Ford in 2004 could still drive a reassessment.

The US economic recovery will be of only limited help. The overzealous use of incentives to prop up sales means there is no pent-up cyclical demand waiting in the wings. Beyond the US price war, the key problem for Ford is competition from Japanese and European brands, and Ford is not the only maker offering new models in 2004. This week's decision to increase incentives on the heavily promoted new F-150 truck is a worrying sign.

-->>Lex: Ford
>Published: Nov 12 2003 18:44 | Last Updated: Nov 12 2003 18:44
>
>Ford's credit outlook may be stable for now. If only the same could be said of its sales outlook. To the relief of the credit market, S&P downgraded Ford's long-term credit rating to one notch above junk, but assigned a stable rather than negative outlook. With Ford the second-largest issuer of US corporate bonds, investors feared the prospect of its becoming a fallen angel and sparking forced selling. The removal of this threat is a significant positive for the corporate bond market.
>Ford's credit spreads tightened sharply as S&P said that, even if earnings failed to improve, or minor losses were incurred over the next two years, the rating would not necessarily be in jeopardy. Ford has been given time to allow restructuring efforts and new products to revive its fortunes.
>Yet S&P has offered these assurances on Ford before and then later moved to downgrade its rating. An outlook statement is only an assessment of the probability that a further rating change will be required. Deteriorating performance at Ford in 2004 could still drive a reassessment.
>The US economic recovery will be of only limited help. The overzealous use of incentives to prop up sales means there is no pent-up cyclical demand waiting in the wings. Beyond the US price war, the key problem for Ford is competition from Japanese and European brands, and Ford is not the only maker offering new models in 2004. This week's decision to increase incentives on the heavily promoted new F-150 truck is a worrying sign.
>

Ford ist in der Tat recht nahe an Chapter 7 - der Liquidierung.
Man hat sich nur noch nicht getraut, sie auf Junk zu raten.
Bei $ 180 Mrd. Schulden wäre aber zumindest C angegebracht gewesen.
Politico.