Shares of Ford Motor Co. (F) rose 1.4% in morning trading Thursday, after S&P Global Ratings swung to a positive outlook on the automaker's credit from a negative outlook, citing "positives" of ongoing cost-reduction programs, favorable product pricing and leaner inventories. S&P said the positive outlook indicates the "increased likelihood" that a rating upgrade could be considered within the next 12 to 18 months. Since Ford's credit is currently rated BB+, which is the highest speculative grade, or "junk" rating, an upgrade would lift the credit to investment-grade status. In comparison, rival General Motors Co.'s (GM) credit rating at S&P 500 is BBB, or two notches above "junk" status, with a negative outlook. He believes the positives could offset a large portion of raw material inflation risk. "Ford's management team has made strides in addressing core operating issues and recent significant investments toward electrification have adequately positioned it for the future," S&P said. Ford's stock has soared 129.2% year to date, while GM shares have run up 55.4% and the S&P 500 has gained 25.0%.
(END) Dow Jones Newswires
November 18, 2021 09:59 ET (14:59 GMT)
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