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TEXT - S&P comments on Ford Motor Co
January 10, 2013 / 3:45 PM / 5 years ago

TEXT - S&P comments on Ford Motor Co

Jan 10 - Standard & Poor’s Ratings Services said today that Ford Motor Co.’s (BB+/Positive/--) announcement that it will double the quarterly dividend to 10 cents per share (this would equate to about $1.6 billion for an entire year) does not affect the ratings or outlook on the company. Ford restarted its common dividend in early 2012. The higher annual dividend remains less than the minimum annual automotive operating cash flow (as reported and before dividends) of $2 billion to $3 billion that we assume Ford will generate for the current rating. We believe the company will be able to continue to improve its capital structure despite the higher dividend, as well as sustain liquidity of at least $30 billion. Still, prospects for cash use in the weak European market are unchanged; this will dampen cash flow prospects for most operations outside North America. For further information, please see: Research Update: Ford Outlook Revised To Positive, More Diverse Profitability Needed For An Upgrade; ‘BB+’ Rating Affirmed, published Aug. 10, 2012, on RatingsDirect.

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