Ratings agency Moody’s is considering upgrading Ford’s credit rating now the automaker and UAW union have agreed a tentative four year labour deal.
Moody’s said that if the deal gets approved and if initial assessments were maintained, there was a probability of Ford getting higher credit ratings.
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Ford’s present rating of Ba2 could be hiked to two notches below investment grade.
Bruce Clark, senior vice president at Moody’s said, “Ford has built a much stronger operating model and financial profile during the past year. We want to determine if it can maintain this position if markets conditions become more difficult.”
Last week, General Motors’ rating was raised two notches from BB- to BB+ by Standard & Poor’s. With this, GM was left one notch below investment grade.
