Ford Company credit rating downgraded

[joeb427]

https://www.nasdaq.com/articles/for...vestment-grade-status-now-in-peril-2020-03-24

Maybe a merge with another auto manufacturer in the future? VW?

F$5.34-0.05 0.93%
Ford Downgraded to BBB- by Fitch, Investment-Grade Status Now in Peril
CONTRIBUTOR
John Rosevear The Motley Fool
PUBLISHED
MAR 24, 2020 10:06AM EDT
Ford Motor Company's (NYSE: F) credit rating was downgraded by Fitch Ratings on Monday, a move that puts Ford's hard-won investment-grade rating in peril.
Fitch cut Ford's credit rating by one notch, to BBB-, with a "negative" outlook. The rating applies to both Ford Motor Company itself as well as its financial-services subsidiary, Ford Credit. BBB- is the lowest level considered "investment grade."
Fitch said that the downgrade "reflects Fitch's significant concerns about the effect that the global coronavirus mitigation actions currently under way will have on the company's near-term financial performance and credit profile."

Image source: Ford Motor Company.
Fitch said that it believes Ford has ample financial flexibility to get through an extended shutdown of its factories in North America and Europe. The agency's concern is with what could happen afterward: If COVID-19 passes but leaves Europe and North America mired in deep recessions that could strain Ford's balance sheet and lead to a further downgrade.

On the other hand, if Ford's operations return to a "typical run rate" in the second half of 2020, it could revise the company's outlook to "stable," Fitch said.
The downgrade puts Ford's investment-grade rating in peril. Moody's Investors Service cut Ford's rating to junk level in September; if either Fitch or the third credit-rating agency, Standard & Poor's, follows suit, then Ford will no longer be considered an investment-grade credit.
Ford suspended production at its factories in North America and Europe until at least the end of March, to sanitize the facilities and to adjust its inventories ahead of an expected sales decline.
Ford last week drew down $15.4 billion from its credit line and suspended its dividend.

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[Msfitoy]

This shut down of America's business will kill waaaaaay more people than the CV bug...

 

[TrebMaxx]

They will survive. Probably a good time to buy some stock.

 

[Msfitoy]

They will survive. Probably a good time to buy some stock.

I love to...but I'm about to loose my job...math doesn't work...

 

[TrebMaxx]

Hang in there brother. Happened to me in 2008 so I know it sucks.

 

[Msfitoy]

Hang in there brother. Happened to me in 2008 so I know it sucks.

I survived 08...this time is the whole world...no where to go for relief...even if the lucky one's keep their job, it can only last so long...when there's no customers for anything...there's nothing to build or support...even health/LEO are paid by taxes from workers...no workers...no pay...the whole system stops...we need to get back to work...

 

[P. A. Schilke]

I love to...but I'm about to loose my job...math doesn't work...

Hi Sid,

I hear you! Here I was, a Ford Engineer...all my Savings and Investments deductions were in Ford Stock. Ford had classes in investments, retirements etc. I took a class in investing about the time Ford partnered with Fidelity Investments. The teacher told us it was imperative to diversity our holdings, so I sold all my Ford stock and invested in the closed funds of Fidelity Magellan and Fidelity Contra Fund...not funds available to to the general public as well as some bond funds as advised by my financial advisor. Well....Ford Stock dove from the $34 a share to $10.... Glad I did. Helped my secure my financial security. Lesson learned was to not do the "trite saying" put all your eggs in the same basket.

Okay...sort of a Back Story.

All my transferring and such, ended up with 0.1 share of Ford Stock... For about 10 years I got a ton of quarterly, Semi Annual and Annual Reports.... Threw them in the recycle bin.... Finally they caught me and told me to increase the shares to 100 shares, or they would sell and report to the IRS my sale with dire consequences of my less than $2 sale.... Darn.... My tax on $2 was more than I could bear...yeah right.... I love Ford, but I saw the hand writing on the wall thanks to the Ford Seminars. Much of my peer group did not do this and are struggling financially, having sat on Ford Stock as it plummeted... I was not one of them.... My retirement presented my opportunity to exercise my Stock Options...they were worthless and I walked away from them... Not worth it for many of them..

I thought about buying into Ford again, but I have no confidence in Hackett and as such sit in the sidelines. Ranger brings hope. The Emustang brings me angst as it is likely going the way of the American Motors Pacer....sold to every oddball in the country and then sales fell off to levels that is was discontinued. Please take this as Just My Opinion. Just like Jacque Nasser... Jim Hackett needs to go..

Best,
Phil Schilke
Ranger Vehicle Engineering
Ford Motor Co. Retired

 

[Floyd]

Hi Sid,

I hear you! Here I was, a Ford Engineer...all my Savings and Investments deductions were in Ford Stock. Ford had classes in investments, retirements etc. I took a class in investing about the time Ford partnered with Fidelity Investments. The teacher told us it was imperative to diversity our holdings, so I sold all my Ford stock and invested in the closed funds of Fidelity Magellan and Fidelity Contra Fund...not funds available to to the general public as well as some bond funds as advised by my financial advisor. Well....Ford Stock dove from the $34 a share to $10.... Glad I did. Helped my secure my financial security. Lesson learned was to not do the "trite saying" put all your eggs in the same basket.

Okay...sort of a Back Story.

All my transferring and such, ended up with 0.1 share of Ford Stock... For about 10 years I got a ton of quarterly, Semi Annual and Annual Reports.... Threw them in the recycle bin.... Finally they caught me and told me to increase the shares to 100 shares, or they would sell and report to the IRS my sale with dire consequences of my less than $2 sale.... Darn.... My tax on $2 was more than I could bear...yeah right.... I love Ford, but I saw the hand writing on the wall thanks to the Ford Seminars. Much of my peer group did not do this and are struggling financially, having sat on Ford Stock as it plummeted... I was not one of them.... My retirement presented my opportunity to exercise my Stock Options...they were worthless and I walked away from them... Not worth it for many of them..

I thought about buying into Ford again, but I have no confidence in Hackett and as such sit in the sidelines. Ranger brings hope. The Emustang brings me angst as it is likely by the American Motors Pacer....sold to every oddball in the country and then sales fell off to levels that is was discontinued. Pleas take this as Just My Opinion. Just like Jacque Nasser... Jim Hackett needs to go..

Best,
Phil Schilke
Ranger Vehicle Engineering
Ford Motor Co. Retired

As a lifelong Ford guy, I have seen Ford prosper and suffer under good and bad management,But to me, Hackett is actually dangerous to the company's future.
The products are still the best in the industry with unsurpassed engineering and build quality... but the build philosophy is slipping and they treat their true customer base with contempt.
Marketing and customer support structures are abysmal and competent service is losing trust as the techs are not being kept abreast in training or given the factory support they need.

Ford has never been Toyota and they can not survive by copying them.
As you say, Please take this as just my opinion, but a team is only as good as its coach..

Still I am optimistic that Ford will once again rise to the occasion and put their long term interest and their customer base first. Their vision needs to once again be beyond the end of their noses.

Hackett hopefully will lose favor and his job soon.
Maybe he could build office furniture?

 

[levimac`]

https://www.nasdaq.com/articles/for...vestment-grade-status-now-in-peril-2020-03-24

Maybe a merge with another auto manufacturer in the future? VW?

F$5.34-0.05 0.93%
Ford Downgraded to BBB- by Fitch, Investment-Grade Status Now in Peril
CONTRIBUTOR
John Rosevear The Motley Fool
PUBLISHED
MAR 24, 2020 10:06AM EDT
Ford Motor Company's (NYSE: F) credit rating was downgraded by Fitch Ratings on Monday, a move that puts Ford's hard-won investment-grade rating in peril.
Fitch cut Ford's credit rating by one notch, to BBB-, with a "negative" outlook. The rating applies to both Ford Motor Company itself as well as its financial-services subsidiary, Ford Credit. BBB- is the lowest level considered "investment grade."
Fitch said that the downgrade "reflects Fitch's significant concerns about the effect that the global coronavirus mitigation actions currently under way will have on the company's near-term financial performance and credit profile."

Image source: Ford Motor Company.
Fitch said that it believes Ford has ample financial flexibility to get through an extended shutdown of its factories in North America and Europe. The agency's concern is with what could happen afterward: If COVID-19 passes but leaves Europe and North America mired in deep recessions that could strain Ford's balance sheet and lead to a further downgrade.

On the other hand, if Ford's operations return to a "typical run rate" in the second half of 2020, it could revise the company's outlook to "stable," Fitch said.
The downgrade puts Ford's investment-grade rating in peril. Moody's Investors Service cut Ford's rating to junk level in September; if either Fitch or the third credit-rating agency, Standard & Poor's, follows suit, then Ford will no longer be considered an investment-grade credit.
Ford suspended production at its factories in North America and Europe until at least the end of March, to sanitize the facilities and to adjust its inventories ahead of an expected sales decline.
Ford last week drew down $15.4 billion from its credit line and suspended its dividend.

I seem to remember the auto manufactures used to always, or so it seems to me, a non automotive person except as a consumer they
always shut their plants down in inopportune times for their employees in the 70's at least and perhaps before an after as well, that is one of the reasons the automobile union contracts are like they are to protect the workers from the unconcerned attitudes of the highly paid
CEOs of the vehicle manufacturers ect............
Just a thought as a free American and consumer. A big ass car lover too and these little ranger, are the top of the heap to me wish I could have 3 or 4 of these little beauties, just cause, heck maybe even 7 a different one to drive everyday HAAAAAAAAAAAAAAAA.

 

[P. A. Schilke]

As a lifelong Ford guy, I have seen Ford prosper and suffer under good and bad management,But to me, Hackett is actually dangerous to the company's future.
The products are still the best in the industry with unsurpassed engineering and build quality... but the build philosophy is slipping and they treat their true customer base with contempt.
Marketing and customer support structures are abysmal and competent service is losing trust as the techs are not being kept abreast in training or given the factory support they need.

Ford has never been Toyota and they can not survive by copying them.
As you say, Please take this as just my opinion, but a team is only as good as its coach..

Still I am optimistic that Ford will once again rise to the occasion and put their long term interest and their customer base first. Their vision needs to once again be beyond the end of their noses.

Hackett hopefully will lose favor and his job soon.
Maybe he could build office furniture?

Hi Floyd,

Another note...the way Hacket hacked the white collar reduction was by personality. If your boss liked you, you stayed....if he did not like you, goodbye..... A lot of strong but capable people were shown the door....what stayed behind were mostly ass kissers.....

Hope Bill Ford will step in once again and like Nassar, Hackett will be shown the door

Best,
Phil Schilke
Ranger Vehicle Engineering
Ford Motor Co. Retired

 

[P. A. Schilke]

Hi Folks,

From my Retiree Newsletter

Ford Remains Committed to an Investment-Grade Rating





By Tim Stone
Mar-25-2020




Today, S&P and Moody’s, two of the agencies that rate the debt of Ford, announced they were both lowering their ratings of Ford and Ford Credit one notch. This took Ford and Ford Credit to non-investment grade with S&P and furthered Moody’s already non-investment grade rating.
So, what do these downgrades mean for us?
As I’ve said to the Ford team lots of times, we are committed to investment-grade ratings over the long-term. But those ratings are just the output of doing what we know is necessary and are already working on: putting customers first, thinking like owners, becoming more fit, executing well all the time, and delivering on our operating and financial plans. The coronavirus crisis creates additional challenges right now. Like we did in the Great Recession, we are managing through the issue in a way that safeguards our business, our team, our customers and our dealers.
We plan to emerge from this crisis as a stronger company that is an engine for economic recovery in all the markets we serve. We have maintained a strong balance sheet and ample liquidity to ensure we have the resources required to weather periods of economic uncertainty and, at the same time, continue to invest in our future.
I believe Ford remains well-positioned to be a leader in the emerging era of Smart Vehicles in a Smart World, and I am optimistic about the future of our company.
If you have questions, please send me an email.
-Tim Stone


Best,
Phil Schilke
Ranger Vehicle Engineering
Ford Motor Co. Retired

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