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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (24580)	10/26/2002 12:12:44 AM
From: elmatador	Read Replies (1) \| Respond to of 74559

World awash with liquidity but no takers are worth the risk of lending that money. It is going to get worse since even major corporations: Ericsson, ABB, Ford, GM etc, are too risky to lend money to. Hence no way you'll get interest on the money you give your banker to lend to someone else. What remains? Double mortgage sin the US. Ford sees credit ratings downgraded By Jenny Wiggins in New York Published: October 25 2002 18:31 \| Last Updated: October 25 2002 18:31 Ford's credit ratings were on Friday lowered one notch by Standard & Poor's due to ongoing concerns about the "adequacy" of the automaker's restructuring programme. The downgrade to the low investment grade ranking of "BBB" leaves Ford's credit ratings two notches above junk, and follows a similar downgrade of General Motors last week. Ford initiated an extensive restructuring plan this year to try to restore profitability. However, its automotive operations are still unprofitable and S&P said it was wo rried by "decreasing industry demand in North America, industry-wide intensification of price deterioration . . . and Ford's market share weakness". S&P has kept a negative outlook on Ford's ratings and said they could be lowered again if the company has trouble sustaining earnings improvement. Ford said on Friday that the change in its credit rating did "not reflect the fundamental strength of our business". It said it had strong liquidity with nearly $26bn in cash, that its US market share had "stabilised" and that it had accelerated cost-cutting efforts.