Ford releases collateral securing $9.3 billion revolver's obligations

By Toni Weeks

San Diego, May 22 - Ford Motor Co. has released the collateral securing its obligations under the company's $9.3 billion revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

The action came as a result of Ford's senior long-term unsecured debt being rated investment grade by two of the three major rating agencies. Moody's Investors Service raised the senior unsecured ratings of Ford to Baa3 from Ba2 and of Ford Motor Credit Co. LLC to Baa3 from Ba1 on Tuesday. Fitch Ratings upgraded the senior unsecured ratings to BBB- from BB+ on April 24.

In addition, the U.S. Department of Energy's second-lien security interest in the collateral, securing up to $5.9 billion of loans to fund development and production of advanced technology vehicles, also has been released, the filing noted.

"We are so proud of today's decision by Moody's and the resulting release of all collateral - particularly the Ford Blue Oval. This is an important milestone," president and chief executive officer Alan Mulally said in a press release.

The automotive company is based in Dearborn, Mich.

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