BULLETIN: Ford Motor Co.'s Ratings Unaffected by Accord With Visteon Corp. Dec 03
- ID: 2027684
- December 2003
- Standard & Poors
NEW YORK (Standard & Poor's) Dec. 22, 2003--Today's announcement by Ford Motor Co. (Ford; BBB-/Stable/A-3) and Visteon Corp. (BB+/Stable/--) of significant modifications to agreements governing the relationship between the two companies will not have any immediate effect on the ratings or rating outlook of Ford, even though Standard & Poor's Ratings Services views the changes announced today as adverse to Ford's credit quality. Ford's ratings had been lowered on Nov.12, 2003, and the measures announced today are consistent with the assumptions incorporated in that action. Ford will effectively re-assume from Visteon $1.65 billion of retiree medical liabilities for which Ford had previously been only contingently liable. This will add to Ford's massive unfunded retiree medical liability ($27.4 billion at yearend...
Companies mentioned in this report are: Ford Motor Co.,Visteon Corp.
Action: S&P Event
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Research type: News
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