Ford: S&P raises its rating, the stock climbs

( – S&P Global Ratings announced on Tuesday that it had raised its credit rating on Ford from ‘BB+’ to ‘BBB-‘ with an outlook maintained at ‘stable’.

In a press release, the rating agency states that it expects the operating margin of the American automobile group to well exceed the threshold of 8% in 2024, then 2025, given its solid commercial dynamics and its good cost control. .

S&P notes that the manufacturer had cash of around $51 billion at the end of September, an amount considered largely sufficient to provide it with the financial flexibility necessary to finance its change. strategic ‘disruptive’ in a very competitive market.

The agency adds that its ‘stable’ outlook reflects the prospect of the implementation of a cost reduction program over the next 24 months which should more than offset rising labor costs, losses incurred across the range ‘Model e’ and the growing pressures on its prices due to the economic slowdown.

Following these comments, Ford shares climbed 2.7% on Tuesday on the New York Stock Exchange, compared with a gain of only 0.1% for the S&P 500 index.

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