Moody's: Ford unchanged

Moody's Investors Service said that the Ba2 corporate family rating, SGL-2 speculative-grade liquidity rating and positive outlook of Ford Motor Co. remain unchanged following the company's announcement that it will redeem $3 billion in trust preferred securities for cash on March 15.

This transaction is consistent with Ford's stated objective of deleveraging its balance sheet while maintaining sound liquidity, Moody's said.

The pending $3 billion redemption follows the $14.5 billion in debt reductions achieved during 2010 and will result in pro forma adjusted debt of $33 billion, the agency added. The redemption would reduce Ford's 2010 year-end cash position to $17.5 billion.

The ratings continue to reflect the expectation that Ford's credit metrics will improve during 2011 and could support an upgrade during the next 12 to 18 months, the agency added.

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