S&P Global Ratings upgraded Ford Motor Co.’s rating to BBB- late Monday, restoring it to investment grade after it was lowered into junk in 2020. “We expect Ford Motor Co.’s
F,
EBITDA margins will exceed 8% (ourpreviously stated target) with adequate cushion in 2024 and 2025 given strong momentum in its commercial vehicle franchise and gradual cost reduction,” the rating agency said in a statement. S&P also highlighted the company’s cash balance of about $29 billion as of Sept. 30, overall liquidity of about $51 billion, and said that gives it ample leeway to compete in its end markets. Ford has “also addressed its overcapacity and higher costs in Europe and completed restructuring its loss-making SouthAmerican operations by shifting the business toward a more profitable asset-light model,” said S&P. Ford has about $72.4 billion in outstanding bond, with the bulk of that total, or $15.9 billion worth, due to mature in 2026.
