http://news.ft.com/cms/s/ea6601fe-a8...00e2511c8.html
Quote:
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Originally Posted by FT.com
Fierce competition in the North American car and truck market, compounded by high fuel prices and soaring healthcare costs, have forced Ford Motor Company to abandon the profit target it set three years ago as a centrepiece of its revitalisation plan.
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Standard & Poor's immediately cut its outlook on Ford's credit rating from stable to negative. "We now view the rating as weak," said Scott Sprinzen, an S&P analyst.
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They don't mention it in this article, but Ford has their bond rating at BBB-. Like GM, their corporate paper is just above 'Junk Bond' status... although unlike GM, Ford is fortunately not drowning in nearly as an immense amount of debt so it could be worse for them. Still, stock's already dipped by around 5% in after hours trading and this announcement was made only around 8 hours ago.
One thing notable in both "down earnings" announcements: They both cite soaring health costs as a major factor in their woes. You'd almost think they were acting communist and bucking for a single payer health system.