If you’re worried about the Credit Crunch, then Ford debt nearing junk status is a bad sign | Jubak Picks

If you’re worried about the Credit Crunch, then Ford debt nearing junk status is a bad sign | Jubak Picks

The sinking credit rating on Ford Motor’s debt is exactly that kind of sign. It doesn’t say that the credit crunch is here, but it does argue that it is coming and that it is getting closer.

Ford’s debt is currently rated one-step above junk bond status by Moody’s Investors Service and two steps above junk by Standard & Poor’s.

This is a big deal–Ford is one of the 15 biggest issues of corporate debt in the United States outside the financial sector. The company has more than $150 billion of short- and long-term debt outstanding.

via If you’re worried about the Credit Crunch, then Ford debt nearing junk status is a bad sign | Jubak Picks

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