Obbligazioni Ford

[o-belix]

Si parla spesso di GMAC, ma di Ford ci sono novità, è anch' essa sull' orlo del precipizio, ma quanto di meno rispetto alle altre?
Ringrazio chi avesse qualche news

[cricket72]

ciao
ti allego una informativa della DBRS



Ford Motor Company
DBRS Downgrades Ford, Trend Remains Negative

Date Of Release: Nov 7, 2008 17:30


DBRS has today downgraded the ratings of Ford Motor Company (Ford or the Company), including Ford’s Issuer Rating to CCC (high) from B (low). Ford’s Senior Secured Credit Facilities and Long-Term Debt are downgraded to B (low) and CCC respectively. Ford Motor Credit Company LLC and Ford Credit Canada Limited’s short- and long-term debt are also downgraded to B (low) and R-5, respectively. (This reflects the maintenance of the one notch rating differential between the parent company and the credit company.) The trends remain Negative. The ratings action reflects DBRS’s concerns regarding the increasing challenges facing Ford over the near to medium term as the Company seeks to maintain sufficient liquidity balances while attempting to turn around its North American operations amid severe market conditions.

Ford today announced third-quarter results that were below DBRS’s expectations. The Company’s reported net income for the period was a moderate loss of $129 million; however, this included a significant special item incorporating retiree health care curtailment gains. Excluding the special items, Ford’s automotive operations generated a pre-tax loss of $2.7 billion. More significantly, Ford used $7.7 billion in cash through the quarter, with the Company’s gross cash balances as of September 30, 2008 totaling $18.9 billion, down sharply from a 2007 year-end level of $34.6 billion. DBRS notes that the cash burn in recent months has been exacerbated by the Company’s aggressive production declines in response to falling vehicle demand; this has had a pronounced negative impact on Ford’s level of accounts payable. DBRS expects the significant use of working capital to partially reverse itself in early 2009.

The weak results are indicative of several obstacles that have hindered the Company, along with its Detroit 3 peers. Product offerings are relatively over-weighted to pick-up trucks and SUVs, which have fallen out of favour in the U.S. market amid increasing fuel costs. This has led to a shift in vehicle segmentation toward smaller vehicles that has accelerated sharply as fuel prices peaked earlier this year. (Despite the significant moderation in fuel prices the past two months, this trend has not significantly reversed.) Additionally, U.S. industry volumes are falling precipitously as economic concerns in the U.S. proliferated into a global crisis, triggering a sharp reduction in access to credit and much lower consumer confidence. Vehicle sales in September were a seasonally adjusted annual rate (SAAR) of 12.2 million units. This was followed by a further calamitous drop to a SAAR of 10.9 million units in October, which represented the lowest monthly total in 25 years. The sales declines and associated rate of cash burn, together with significantly restricted access to credit or external sources of capital have increased concerns regarding the ultimate viability of the Detroit 3, notably General Motors Corporation (GM) and Chrysler LLC (Chrysler).

As previously noted, Ford’s use of cash through the first nine months of 2008 amounts to a very alarming level of $15.7 billion. However, this includes significant Voluntary Employee Beneficiary Association-related (VEBA) payments that will not be repeated going forward, in addition to the aforementioned significant use of working capital, which should partially reverse itself early next year. Accordingly, DBRS believes that Ford’s rate of cash burn should moderate considerably over the near term.

Additionally, DBRS notes that the Company today unveiled several measures to help defend the Company’s liquidity position going forward. These include reduced capital expenditures over the next two years as well as lower personnel-related costs to be achieved through further staff reductions and revisions to total compensation. Furthermore, Ford seeks to recover capital from Ford Credit as it reduces its balance sheet in line with significantly lower vehicle volumes. DBRS notes that Ford’s liquidity position continues to be the highest of the Detroit 3; in addition to its cash balances, Ford’s availability of secured credit lines totaled $10.7 billion for a total liquidity position of $29.6 billion as of September 30, 2008.

The ratings remain on Negative trend, reflecting the very weak industry conditions that are expected to prevail over the remainder of this year and through 2009. Additional factors that may impact the ratings over the near term include the eventual outcomes of the dialogue Ford and its automotive peers are having with various governments as the automotive industry seeks assistance as it undergoes the current turbulent market conditions worldwide.