Ford’s Return to Investment Grade Solidifies Era of Rising Stars
- Carmaker’s debt was largest component of junk-bond gauges
- Downgrades to junk spiked by record amount during the pandemic
The US automaker this week clinched a blue-chip grade from S&P Global Ratings.
Photographer: Krisztian Bocsi/BloombergThis article is for subscribers only.
An upgrade of Ford Motor Co.’s credit rating to investment grade pulled $46.8 billion of debt out of junk bond indexes last month — helping to shrink a global benchmark of the asset class by the most since 2005.
The US automaker this week clinched a blue-chip grade from S&P Global Ratings, with the upgrade signaling a shift in corporate priorities as companies shore up their finances in the face of a potential recession. To some on Wall Street, it’s just the beginning.