Fitch Ratings said it has upgraded the Issuer Default Ratings (IDRs) for Ford and its captive finance subsidiary Ford Motor Credit to B from B-. Fitch Ratings said its rating outlook for both Ford and Ford Credit remains positive.
Fitch Ratings added that the upgrade of the IDRs and the positive outlook reflect Fitch's expectation that Ford's credit profile will continue to strengthen as the global economy recovers and as the company leverages its increasingly competitive product portfolio and improved cost position to increase production and unit sales.
Also, coupled with Ford's solid price performance, margins are expected to grow over the medium term, driving stronger levels of free cash flow, Fitch said.
Wall Street Strategies' David Silver is still bullish on the stock, but says he believes it will even out sooner or later. "Europe continues to be a problematic area and it does look like the rebound is slowing." At the same time, Silver postulates, "it seems the Street continues to expect the hockey stick type rebound to continue."
-- Reported by Andrea Tse in New York
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