Ford Motor Co.'s Proposed Unsecured Notes Rated 'BB+'; Rating On CreditWatch Negative

NEW YORK (S&P Global Ratings) April 17, 2020--S&P Global Ratings today assigned its 'BB+' issue-level rating and '3' recovery rating to automaker Ford Motor Co.'s proposed unsecured notes. The '3' recovery rating indicates our expectation for meaningful (50%-70%; rounded estimate: 65%) recovery for unsecured lenders in the event of a payment default. The ratings on these notes will be placed on CreditWatch with negative implications. We expect the company to use the net proceeds for general corporate purposes. We expect the transaction to be roughly neutral for Ford's debt to EBITDA, which we estimate will remain under 1.5x over the next 12 months. As of April 9 and excluding this proposed issuance, Ford had about $30 billion in cash on

...April 17, 2020 NEW YORK (S&P Global Ratings) April 17, 2020--S&P Global Ratings today assigned its '##+' issue-level rating and '3' recovery rating to automaker Ford Motor Co.'s proposed unsecured notes. The '3' recovery rating indicates our expectation for meaningful (50%-70%; rounded estimate: 65%) recovery for unsecured lenders in the event of a payment default. The ratings on these notes will be placed on CreditWatch with negative implications. We expect the company to use the net proceeds for general corporate purposes. We expect the transaction to be roughly neutral for Ford's debt to EBITDA, which we estimate will remain under 1.5x over the next 12 months. As of April 9 and excluding this proposed issuance, Ford had about $30 billion in cash on its balance sheet. On March 25, 2020, we downgraded Ford to '##+' from '###-' and assigned '##+' issue-level ratings to its unsecured debt. All our ratings on Ford at that time were placed on CreditWatch with negative implications. The CreditWatch...

Ratings Action