Ford Motor Co.'s Proposed $2 Billion Senior Unsecured Convertible Notes Rated 'BB+' - S&P Global Ratings’ Credit Research

Ford Motor Co.'s Proposed $2 Billion Senior Unsecured Convertible Notes Rated 'BB+'

Ford Motor Co.'s Proposed $2 Billion Senior Unsecured Convertible Notes Rated 'BB+' - S&P Global Ratings’ Credit Research
Ford Motor Co.'s Proposed $2 Billion Senior Unsecured Convertible Notes Rated 'BB+'
Published Mar 16, 2021
3 pages (1431 words) — Published Mar 16, 2021
Price US$ 150.00  |  Buy this Report Now

About This Report

  
Abstract:

NEW YORK (S&P Global Ratings) March 16, 2021--S&P Global Ratings today assigned its 'BB+' issue-level rating to Ford Motor Co.'s proposed $2 billion convertible senior notes due 2026. The '3' recovery rating indicates our expectation for meaningful recovery (50%-70%; rounded estimate: 65%) in a hypothetical default scenario. The company could upsize the transaction by up to $300 million to cover over-allotments, if any, though this would not affect our issue-level or recovery ratings on the proposed convertible notes. We expect the company to use proceeds from the issuance for general corporate purposes including the potential repayment of debt. The issuance has no material impact on the company's cash flow adequacy metrics and there is potential for cash interest savings if

  
Brief Excerpt:

...- General Criteria: Hybrid Capital: Methodology And Assumptions, July 1, 2019 - General Criteria: Group Rating Methodology, July 1, 2019 - Criteria | Corporates | General: Corporate Methodology: Ratios And Adjustments, April 1, 2019 - General Criteria: Methodology For Linking Long-Term And Short-Term Ratings, April 7, 2017 - Criteria | Corporates | General: Recovery Rating Criteria For Speculative-Grade Corporate Issuers, Dec. 7, 2016 - General Criteria: Guarantee Criteria, Oct. 21, 2016 - Criteria | Corporates | General: Methodology: The Impact Of Captive Finance Operations On Nonfinancial Corporate Issuers, Dec. 14, 2015...

  
Report Type:

Ratings Action

Ticker
F
Issuer
Ford Motor Co.
GICS
Automobile Manufacturers (25102010)
Sector
Global Issuers , Structured Finance
Country
United States
Region
United States
Format:
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S&P Global Ratings’ Credit Research—S&P Global Ratings’ credit research provides analysis on issuers and debt obligations of corporations, states and municipalities, financial institutions, insurance companies and sovereign governments. S&P Global Ratings also offers insight into the credit risk of structured finance deals, providing an independent view of credit risk associated with a growing array of debt-securitized instruments.

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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Ford Motor Co.'s Proposed $2 Billion Senior Unsecured Convertible Notes Rated 'BB+'" Mar 16, 2021. Alacra Store. May 10, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Ford-Motor-Co-s-Proposed-2-Billion-Senior-Unsecured-Convertible-Notes-Rated-BB-2612270>
  
APA:
S&P Global Ratings’ Credit Research. (). Ford Motor Co.'s Proposed $2 Billion Senior Unsecured Convertible Notes Rated 'BB+' Mar 16, 2021. New York, NY: Alacra Store. Retrieved May 10, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Ford-Motor-Co-s-Proposed-2-Billion-Senior-Unsecured-Convertible-Notes-Rated-BB-2612270>
  
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