Moody's boosted Ford's credit rating to investment grade Tuesday, three years after the company's financial troubles raised worries it might default on its debt.
Moody's moved the No. 2 U.S. automaker's rating up by two steps to Baa3, the lowest rung of "investment grade" quality, from Ba2, saying it expected Ford (IW 500/6) would be able to keep up the strong sales and profits performance of the past year after a tough restructuring.
"The upgrade of Ford recognizes the strength of the company's position in North America, its robust liquidity position, and our expectation that the company will continue to embrace sound operating and financial disciplines," said Moody's.
"We believe that these strengths will enable Ford to maintain an investment-grade profile in the face of the sector's ongoing cyclicality and weakness in the European market."
"The key factor in our considering an investment-grade rating for Ford was whether or not the company would be able to sustain its strong performance," said Moody's senior vice president Bruce Clark.
"We concluded that the improvements Ford has made are likely to be lasting."
Copyright Agence France-Presse, 2012
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