Ford (F) got its iconic oval back on Tuesday after Moody’s agreed to raise the company’s credit rating to investment grade (Baa3). The company pledged the oval as part of the loan package that Ford received in 2006 that raised $23.5 billion in liquidity.
“The Ford Blue Oval is back where it belongs with the Ford family of 166,000 employees around the world,” said Chairman Bill Ford. “This is a great day for us and is the result of several years of hard work and progress by everyone associated with Ford.”
“When we pledged the Ford Blue Oval as part of the loan package, we were not just pledging an asset. We pledged our heritage. The Ford Blue Oval is one of the most recognized symbols in the world, and it is a source of great pride and passion, both inside and outside our company. Getting the Ford Blue Oval back feels amazing, and it is one of the best days that I can remember.”
Moody’s said in a statement that Ford’s domestic strength and sound balance sheet management should help it withstand weakness in Europe.
“The upgrade of Ford recognizes the strength of the company’s position in North America, its robust liquidity position, and our expectation that the company will continue to embrace sound operating and financial disciplines. We believe that these strengths will enable Ford to maintain an investment grade profile in the face of the sector’s ongoing cyclicality and weakness in the European market.”
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