Risk-to-Price Commentary: Johnson Controls Inc. And Ford Motor Co. Aug 11
- ID: 2086536
- August 2011
- Standard & Poors
Standard & Poor's Ratings Services said Wednesday there's a 33% chance it would raise its 'BB-' corporate credit rating on Ford Motor Co. within 12 months if, among other things, the market for light vehicles continues to improve and the automaker satisfactorily resolves labor contract negotiations. "We believe Ford's financial performance is tracking levels consistent with a higher rating; for example, its global cash generation from automotive operations seems very likely to exceed $4 billion this year," Standard & Poor's wrote in a research summary. "We believe the company's automotive operations in North America will remain profitable with industry light-vehicle sales at or above current levels (i.e., more than 11 million units)." Although Standard & Poor's economists forecast U.S. light-vehicle...
Companies mentioned in this report are:
- Ford Motor Co.
- Ford Motor Credit Co. LLC
- Johnson Controls Inc.
- Harley-Davidson Inc.
- Harley-Davidson Financial Services
- BorgWarner Inc.
- General Motors Financial Co. Inc.
- TRW Automotive Inc.
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues. SHOW LESS READ MORE >