A Ratings Service Downgrades Ford Debt June 9, 2006
Fitch Ratings downgraded the long-term debt of Ford and its financing arm further into junk status.
DETROIT, June 8 (AP) ? Fitch Ratings downgraded the long-term debt of Ford and its financing arm further into junk status on Thursday, citing a “sparse product pipeline” and a restructuring plan that it said would be slow to have an effect.
The announcement sent Ford’s stock to a 52-week low, down 18 cents, or 2.65 percent, to $6.61.
Fitch lowered Ford’s default rating to B+ from BB and its senior unsecured debt rating to BB? from BB.
It also assigned a recovery rating of RR3 to Ford’s senior unsecured debt, meaning it calculates that the automaker has a 50 percent to 70 percent chance of recovery if it files for bankruptcy protection.
Fitch lowered the Ford Motor Credit Company’s issuer default rating to B+ from BB and affirmed its senior unsecured debt at BB with a recovery rating of RR2, which indicates recovery prospects of 70 percent to 90 percent. The outlook on all the ratings is negative.
A Ford spokeswoman, Becky Sanch, said the company was committed to its turnaround plan.
- Posted in : Ford,Uncategorized
- Author : arnold
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