S&P Global upgrades Ford’s rating and restores it to investment grade

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Ciara Linnane is MarketWatch's investing- and corporate-news editor. She is based in New York.

S&P Global Ratings upgraded Ford Motor Co.’s rating to BBB- late Monday, restoring it to investment grade after it was lowered into junk in 2020. “We expect Ford Motor Co.’s F, -1.94% EBITDA margins will exceed 8% with adequate cushion in 2024 and 2025 given strong momentum in its commercial vehicle franchise and gradual cost reduction,” the rating agency said in a statement.

S&P also highlighted the company’s cash balance of about $29 billion as of Sept. 30, overall liquidity of about $51 billion, and said that gives it ample leeway to compete in its end markets. Ford has “also addressed its overcapacity and higher costs in Europe and completed restructuring its loss-making SouthAmerican operations by shifting the business toward a more profitable asset-light model,” said S&P. Ford has about $72.

 

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Healthpeak Properties and Physicians Realty to combine in $21 all-stock merger of equalsCiara Linnane is MarketWatch's investing- and corporate-news editor. She is based in New York.
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