Ford Loses Investment-Grade Status: What It Means
Ford Motor Company (NYSE: F) has lost its investment-grade status. Standard & Poor's cut Ford's credit rating to BB+, one step below investment-grade, on concerns that the shutdown of its North American factories will hurt Ford's margins and cash flow for an extended period.
Ford's return to investment-grade status in 2012, following the 2008-2009 economic crisis, was a hard-won goal for the company. It was rightly celebrated at the time. But with this downgrade, 2 of the 3 major credit-rating agencies now rate Ford below the BBB level -- meaning that the company's credit rating is now, technically speaking, junk.
Here's what we know, and what it might mean.
Source Fool.com
