"Moody's downgraded Ford's credit rating to speculative or "junk" status..."

[sailsmen]

New York (AFP) - Moody's downgraded Ford's credit rating to speculative or "junk" status on Monday, citing the company's weak financial outlook as it embarks on an ambitious restructuring.

Characterizing the auto giant's current overhaul as "unprecedentedly large and challenging," the ratings agency slashed Ford's debt to the non-investment-grade "Ba1" -- saying prospects for its cash flow and profit margins through the 2020-2021 period were poor.

Ford's performance has eroded "during a period in which global automotive conditions have been fairly healthy," Moody's said.

"Ford now faces the challenges of addressing these operational problems as demand in major markets is softening and as the auto industry is contending with an unprecedented pace of change relating to vehicle electrification, autonomous driving, ride sharing and increasingly burdensome emission regulations."

However, Ford "does have a sound balance sheet and liquidity position from which to operate," said Moody's senior vice president Bruce Clark.

The US automaker faces operational inefficiencies in all key regional markets, as well as a much-diminished outlook in China, which has seen profits sink from more than $1 billion in 2016 to a major loss, according to Moody's.

Ford has made progress in lowering costs in China but the outlook is still uncertain because of an "increasingly competitive" auto market and the country's weaker near-term growth rates, Moody's said.

Considerably better is the outlook in North America, where revamps of the lucrative F-series pickup trucks should boost operating projects.

Moody's said the company's alliance with Volkswagen held promise but that it will have only "minimal impact" on Ford's earnings and cash flow before 2022.

Shares of Ford fell 2.9 percent to $9.27 in after-hours trading.

[Invective]

I don't pretend to understand any of this stuff. Can't help but wonder if this stuff is more 'political' rather than 'financial'(?). Ford seems to be doing better than any of the domestic automakers and most international auto makers for that matter. According to the 'experts'(?), POTUS eats babies for breakfast and has a life sized wax figure of Adolf in the West Wing....

[Joe Walsh]

Myeh.....FORD still makes some of the best cars in the world.
Moody's should concentrate on rating Honda and Toyota products as "JUNK" status.

[sailsmen]

"Historical daily share price chart and data for Ford Motor since 1972 adjusted for splits. The latest closing stock price for Ford Motor as of September 10, 2019 is 9.42.
The all-time high Ford Motor stock closing price was 42.45 on May 03, 1999.
The Ford Motor 52-week high stock price is 10.56, which is 12.1% above the current share price.
The Ford Motor 52-week low stock price is 7.41, which is 21.3% below the current share price.
The average Ford Motor stock price for the last 52 weeks is 9.23.".

[Invective]

"Historical daily share price chart and data for Ford Motor since 1972 adjusted for splits. The latest closing stock price for Ford Motor as of September 10, 2019 is 9.42.
The all-time high Ford Motor stock closing price was 42.45 on May 03, 1999.
The Ford Motor 52-week high stock price is 10.56, which is 12.1% above the current share price.
The Ford Motor 52-week low stock price is 7.41, which is 21.3% below the current share price.
The average Ford Motor stock price for the last 52 weeks is 9.23.".


Thinking it may be a good time to buy Ford stock.....

[MyBlackBeasts]

Myeh.....FORD still makes some of the best cars in the world.

In the past, not now. If it wasn't for the trucks (which are pathetic compared to past IMHO) and the Mustang (which went downhill when they went from all American to trying to compete with Euro-trash beginning with IRS) they'd be out of business. Elena completely trashed the company.

[Agent2006]

JMO: Hedge fund crooks driving down the stock so they can buy . Nothing to see here. Where's the SEC in all of this?

[Bigslim1]

Joe let's be real. First off Ford will stop building cars (except for the Mustang) here in the US. Second the cars they are selling, were selling are outdated. They built a newer Taurus for the Chinese market but left our's the same for 10 years. Toyota still makes some of the highest quality, best selling cars out there. I'm not a big fan of Toyota but they seem to find away to bring to market what people want. Ford on the other hand will make what they want and hope people buy it. Case in point, not everyone wants a truck or SUV but Ford feels like everyones wants one. I will say the one one to watch for is Hyundia. They have a deverse product line with Hyundia, KIA and Genesis. I mean you can a cool KIA Turbo Soul or a luxurious Genesis G90. Also they have the industry leading 10yr- 100,000 mile warranty. This why my next car will probably be a KIA Stinger. Sorry Ford but you deserve this rating. And remember Joe, I work in the industry and a UAW member but I can see the mismanagement at Ford.

[Bigslim1]

That high was before a stock split. A lot of guys I worked with lost money back then and had to defer their retirements because of that.

[Invective]

Joe let's be real. First off Ford will stop building cars (except for the Mustang) here in the US. Second the cars they are selling, were selling are outdated. They built a newer Taurus for the Chinese market but left our's the same for 10 years. Toyota still makes some of the highest quality, best selling cars out there. I'm not a big fan of Toyota but they seem to find away to bring to market what people want. Ford on the other hand will make what they want and hope people buy it. Case in point, not everyone wants a truck or SUV but Ford feels like everyones wants one.

What is your opinion of Ford's domestic competition? Perhaps our domestic automakers are pre positioning themselves for the widely anticipated worldwide economic downturn?

[Bigslim1]

Funny you asked that. GM is also taking a "SUV is the next big thing" lead too. It is also killing many of it's car line. Chrysler has not introduced a new car in many, many, many, many, many, did I say many? I meant to say a whole lot of years. They too are concentrating on making more SUVs and trucks. They claim that they are more profitable then cars when actually it is known that making trucks and SUVs cost the same as car to produce. They just mark up the prices on SUVs and trucks because they know people will pay more for them. I myself would rather have some of the cool wagons that they make over in Europe. the Mazda 6 wagon, the Mondeo (Fusion) wagon as well as some others that are aren't offered here. To me there is no such thing as a "Performance SUV". One last thing about FCA (Chrysler). They are in the worst place right now. Fiat has no clue what to do with this company. They tried product sharing with the 200 and Dart and it was a disaster. Fiat feels that all they need is the Jeep and RAM line to survive. If gas prices ever go back up there is going to be a world of hurt in the domestic auto industry.

[Invective]

Bank of America Merrill Lynch has a surprisingly optimistic outlook for the domestic automakers, especially Ford, as of June, 2019.

https://eu.detroitnews.com/story/business/autos/2019/06/12/auto-industry-faces-decline-analyst-predicts/1421777001/


Ford Motor Co. also is well-positioned with recent launches of the Ranger, Escape and Explorer, and the F-150 and Bronco still to come, Murphy said.

"They have really a massive, full schedule of very, very profitable vehicles," he said. "Depending on how Ford manages its product and pricing, it could potentially be a $2 billion-plus profit stream. So Ford is really hitting stride with the right products at the right time."

Although Fiat Chrysler Automobiles NV was an early leader in embracing trucks and crossovers, its replacement rate is below average and so is General Motors Co.'s. GM, however, has announced new crossovers in recent years and most recently its new pickups.

"If you fast-forward to two or four years out, GM's product cadence will pick back up," Murphy said. "This is really a matter of timing for GM, so don't think there is any sort of significant or scary shift that GM might bring. There's a lot of big, positive things coming for them launching."

[Joe Walsh]

Joe let's be real. First off Ford will stop building cars (except for the Mustang) here in the US. Second the cars they are selling, were selling are outdated. They built a newer Taurus for the Chinese market but left our's the same for 10 years.
Toyota still makes some of the highest quality, best selling cars out there.
I'm not a big fan of Toyota but they seem to find away to bring to market what people want.
Ford on the other hand will make what they want and hope people buy it. Case in point, not everyone wants a truck or SUV but Ford feels like everyones wants one. I will say the one one to watch for is Hyundia. They have a deverse product line with Hyundia, KIA and Genesis. I mean you can a cool KIA Turbo Soul or a luxurious Genesis G90. Also they have the industry leading 10yr- 100,000 mile warranty. This why my next car will probably be a KIA Stinger. Sorry Ford but you deserve this rating. And remember Joe, I work in the industry and a UAW member but I can see the mismanagement at Ford.

Actually you are right....I should have said FORD makes some of the best vehicles and I shouldn't have said that Honda and Toyota make JUNK.
They make the best, blandest, road going appliances that continuosly clog our roads and highways.
What I hate about them is that both manufacturers seem to attract these countless, mindless, clueless twits who continually buy these road going appliances.
The owners (obviously they are NOT drivers) don't enjoy piloting a vehicle on the road, and don't seem to care about doing it in a safe, considerate, and legal manner!
They just want something to get them to their kid's soccer practice....it doesn't need to be fun, stylish, sporty, fast...etc.
My problem is that I have to get around and past all these friggin' wandering Terdyotas and Hondas!
I rely on my FORD TTV6 Fusion Sport to make them small in my rearview mirror.
I will stick with FORD products...never owned, nor will I ever own a Toyota/Honda....not because of how they are made....but because of their vast majority of owners.
I don't want to be thought of as one of them!

[Bigslim1]

And once again Ford had a engine (2.7 Twin Turbo) in the Fusion in need of a car worthy of it (an up dated Fusion). The Fusion Is another car that has lived past it's years. People want new and fresh, not old and warmed over.

[Agent2006]

Toyota sux. JMO

google "unintended acceleration camry" , "melted Dashboard Camry", "oil burning engine Camry", "rusted frame 4 runner" , "rusted frame Tacoma".....you will see a pile of class action lawsuits which Toyota fights tooth/nail.

I have a 2005 Toyota Camry - smooth low powered engine, quiet ---it's not a 100% bad car, but like many Japanese cars it is very very hard to work on. Uncomfortable seats. Everything you can touch or grab inside, handles and switches heavy chrome,leather, every thing under the hood or inside the dash, the cheapest styrofoam, plastics, thin metal clips possible.

Maybe because the panther was a fleet car, but Ford puts some effort into making the cars serviceable. And when there's a problem Ford tries to make it right.

my 1990 CVPI - had an intake manifold leak - TSB out there, Ford fixed it 6 years later as a USED car.
my 2010 Milan - LED tailights, I replaced them on my own, Ford reimbursed me as a USED car. $512 check.

[Bigslim1]

Funny you say this as I just this about 2017 Explorer seats...
https://www.msn.com/en-us/autos/news/2017-ford-explorer-recall-seat-frames-with-sharp-edges-injure-31/ar-AAHfD1k?ocid=spartandhp

[Invective]

Funny you say this as I just this about 2017 Explorer seats...
https://www.msn.com/en-us/autos/news/2017-ford-explorer-recall-seat-frames-with-sharp-edges-injure-31/ar-AAHfD1k?ocid=spartandhp

Many seat frames have always had sharp edges - it's not like they are coming through the cushion and poking people in their butts. The following appears to be overt 'sabotage'...

https://eu.freep.com/story/money/cars/ford/2019/09/13/ford-2020-explorer-lincoln-aviator-delivery/2292795001/

[Bigslim1]

No sabotage. It just shows that every manufactor has their problems. Mostly with the vendors.

[Logan86]

Moody's also said the housing market was stable and a solid investment prior to the 08 crash, Merill Lynch/BOA rates them at a buy rating and the dividends on Ford stock are aggressive as hell.

Until Moody's actually does something with the money I have invested they can pontificate all they want but I dont particularly care about their opinion.

[sspmustang]

For the intrepid investor, Ford's dividend yield is currently at 6.8%...