Ford's debt
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Ford's debt
It doesn't hurt to be apprised of Ford's current credit postion. After all, if there isn't a Ford there won't be any F-150's:
Ford Motor Company announced the results of a tender offer, saying it reduced its debt by $9.9 billion.
Approximately $4.3 billion convertible notes were tendered. The automaker will pay $344 million in cash and issue 468 million shares of common stock as a result of the conversion.
In total, Ford said it will use $2.4 billion in cash plus the shares to reduce its outstanding debt by $9.9 billion. Ford had $25.8 billion in debt as of Dec. 31, 2008.
S&P lowers Ford Motor Credit rating to 'SD', debt ratings to 'D' Standard & Poor's Ratings Services said it has lowered its corporate credit and other ratings on Ford Motor Co., reflecting the completion of tender offers for Ford debt. We lowered the corporate credit rating to 'SD' (selective default) and certain issue ratings to 'D'. The rating actions today are consistent with our previously published intentions.
As we stated previously, we consider the completion of the tender offers to be distressed exchanges and, as such, are tantamount to defaults under our criteria. For further details, please see our bulletin of March 23, 2009, "Ford Motor Co. Provides Status Update On Debt Exchanges; Ratings Unaffected For Now." We expect to assign a new corporate credit rating on Ford by mid-April. The new rating will be based on our assessment of the company's new capital structure and liquidity profile, as well as Ford's business prospects and other relevant rating considerations, including our view of the effect of any assistance the U.S. government may provide. Ford is not seeking government loans but has requested a standby credit line of up to $9 billion to protect its liquidity against further market deterioration.
Ford Motor Company announced the results of a tender offer, saying it reduced its debt by $9.9 billion.
Approximately $4.3 billion convertible notes were tendered. The automaker will pay $344 million in cash and issue 468 million shares of common stock as a result of the conversion.
In total, Ford said it will use $2.4 billion in cash plus the shares to reduce its outstanding debt by $9.9 billion. Ford had $25.8 billion in debt as of Dec. 31, 2008.
S&P lowers Ford Motor Credit rating to 'SD', debt ratings to 'D' Standard & Poor's Ratings Services said it has lowered its corporate credit and other ratings on Ford Motor Co., reflecting the completion of tender offers for Ford debt. We lowered the corporate credit rating to 'SD' (selective default) and certain issue ratings to 'D'. The rating actions today are consistent with our previously published intentions.
As we stated previously, we consider the completion of the tender offers to be distressed exchanges and, as such, are tantamount to defaults under our criteria. For further details, please see our bulletin of March 23, 2009, "Ford Motor Co. Provides Status Update On Debt Exchanges; Ratings Unaffected For Now." We expect to assign a new corporate credit rating on Ford by mid-April. The new rating will be based on our assessment of the company's new capital structure and liquidity profile, as well as Ford's business prospects and other relevant rating considerations, including our view of the effect of any assistance the U.S. government may provide. Ford is not seeking government loans but has requested a standby credit line of up to $9 billion to protect its liquidity against further market deterioration.
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