Ford (F) obtained its long-hoped-for credit upgrade today from Standard & Poor’s after getting the nod from Fitch Ratings on Thursday. Shares rose 4% in midday trading.
S&P raised its rating on the automaker two notches to BB+ from BB- with a stable outlook. The company’s debt is now just shy of an investment grade rating.
“The upgrade reflects our view that, among other things, Ford’s prospects for generating free cash flow, and profits in its automotive manufacturing business remain intact, because of its cost base in North America,” said S&P analyst Robert Schulz.
The catalyst appears to be Ford’s deal with the UAW, which was ratified by union members this week.
Moody’s has also said it is reviewing Ford’s credit outlook .
Tags: BBND ,KNXA ,S ,Trade Updates for Wednesday, October 12th
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