Standard & Poor’s Ratings Services has raised its debt rating on Visteon Corp. but said it is considering further downgrading Ford and General Motors because it has doubts about their ability to turn around their North American businesses, according to an Associated Press report.
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The hike on Monday followed Visteon’s transfer of 23 unprofitable facilities back to Ford, AP said, adding that S&P raised Visteon’s rating from a B-minus to a B-plus. The rating is still below investment grade.
S&P downgraded GM and Ford to “junk” status earlier this year, the Associated Press noted.
“The transaction with Ford improves Visteon’s business and financial profiles,” Standard & Poor’s credit analyst Martin King told AP, adding: “Visteon has shed some of its weakest business units – those generating large losses and absorbing substantial cash flow – leaving it with a more competitively positioned and faster growing portfolio of products.”
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