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Ford, GM Say No Plans for Bankruptcy

Shares of both automakers are rising Friday.
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, in statements meant to reassure increasingly nervous investors, said Friday they're not considering filing for bankruptcy.

The statements came a day after

Standard & Poor's

put both companies on negative CreditWatch, indicating their junk ratings might be cut again. Downgrades raise borrowing costs because companies are viewed as less creditworthy as their ratings decline.

Various reports said the automakers, despite a continuing downturn in sales, have no plans to seek court protection from their creditors. In a research report Thursday, S&P said it believes both companies have enough liquidity for at least the rest of this year, though it did express concern that if the slide in the auto industry doesn't begin to reverse, 2009 could be more challenging for both.

Meanwhile, Ford said Chief Financial Officer Don Leclair will retire Nov. 1 after 32 years with the company. Lewis Booth, an executive with Ford's European business, will become the company's executive vice president and CFO.

Shares of Ford were recently up 2.4% at $2.13. GM was gaining 5.3% to $5.01.