Ford, GM Debt Ratings Raised to Highest Junk Level by Moody’s

Moody’s Investors Service raised the credit ratings of Ford Motor Co. and General Motors Co. to the cusp of investment grade, citing new U.S. labor contracts that preserve the automakers’ cost positions.

Moody’s lifted Ford and GM’s ratings one level each to Ba1, the highest non-investment grade, with a positive outlook on both, according to separate statements yesterday by the New York-based company. The automakers’ four-year agreements with the United Auto Workers allow the companies to sustain “competitive” cost structures in North America, Moody’s said.