NEW YORK, Nov. 12 (UPI) -- Standard and Poor's cut Ford Motor Co.'s credit ratings to one notch above junk status Wednesday, the Detroit Free Press reported.
In October, Standard and Poor's issued a negative CreditWatch warning that a cut was likely and imminent.
Ford had aimed to break even this year, excluding its lending and insurance operations at Ford Credit, but Standard and Poor's said it was concerned the company was not making enough from its automotive operations.
"Over the next two years, even if expected improvements in earnings and cash flow should fail to materialize, and even if the company were to experience minor losses, the rating would not necessarily be jeopardized as long as Ford maintains a large (cash) liquidity position and Ford Credit continues to enjoy satisfactory funding flexibility," Standard and Poor's analyst Scott Sprinzen said in a statement.
Chief Financial Officer Don Leclair disagreed with the cut and said things were better with Ford's strong cash position, $2.7 billion in cost-cutting this year, plans to introduce 40 new models next year and plans to earn $1.8 billion this year from continuing operations.
