Ford Motor Co. is a small step away from achieving one of CEO Alan Mulally’s key goals after the maker received another upgrade in its debt rating from Moody’s Investors Service – the agency also giving an upgrade to industry giant General Motors Corp.
Both makers are now rated at “Ba1,” which is for Mulally one step from seeing Ford regain the investment grade rating it lost in 2005 as its finances began to implode. Getting the next upgrade would provide a halo for Ford’s stock, which has taken some sharp blows over recent months – but it would also reduce the maker’s borrowing costs substantially.
The upgrade by Moody’s follows similar actions by its rivals Standard & Poor’s and Fitch, earlier this month. All three ratings agencies cited the improved financials for both Ford and GM, as well as the latest contracts the makers have negotiated with the United Auto Workers Union.