S&P gives Ford notes BB+

S&P said it assigned its BB+ issue-level rating and 3 recovery rating to automaker Ford Motor Co.'s proposed unsecured notes. The 3 recovery rating indicates an expectation for meaningful (50%-70%; rounded estimate: 65%) recovery for unsecured lenders in the event of a payment default.

The agency placed the ratings on these notes on CreditWatch with negative implications.

“We expect the company to use the net proceeds for general corporate purposes. We expect the transaction to be roughly neutral for Ford's debt to EBITDA, which we estimate will remain under 1.5x over the next 12 months. As of April 9 and excluding this proposed issuance, Ford had about $30 billion in cash on its balance sheet,” said S&P in a press release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.