The rating agency Standard & Poor’s raised the credit rating of Ford Motor Co. (F) by one notch on Monday, saying that the company’s credit profile, while still very risky, was better than its nearly-bankrupt competitors.
The agency now gives the corporate credit rating on For a rating of CCC+, up from a rating of SD- (selective default). A CCC+ credit rating is still one of the lowest ratings a corporation can get from the rating agency, and S&P kept the company’s outlook as “negative” saying there’s a possibility that Ford’s credit rating could be downgraded again.
“In our view, Ford's current credit profile remains superior to that of its Michigan-based competitors, GM and Chrysler,” said S&P rating analyst Robert Schulz in a statement. “We also believe Ford Credit has been less constrained recently than its peers in its ability to provide financing for Ford customers.”
Ford has been considered by most lawmakers and traders to be the “healthiest” of Detroit’s Big Three auto makers. The company did not take any direct government loans in December when Chrysler and General Motors (GM) did so. The company also sits on $17.3 billion in cash, which is expected to last it all of this year and perhaps some of 2010.
S&P analysts said that Ford’s credit ratings could be downgraded if the company’s liquidity drops below $10 billion.
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