NEW YORK - Moody's Investors Service last week cut its ratings on Ford Motor Co. deeper into junk territory, saying the automaker may remain under stress through 2007 despite restructuring efforts, Reuters reported.
Moody's also cut its ratings on Ford's finance arm, Ford Motor Credit, to junk status, from investment grade. Most of Ford's $142 billion of consolidated debt is issued by Ford Credit.
Lower ratings increase a company's borrowing costs. Moody's cut its long-term rating on Ford by two notches to Ba3, from Ba1. It cut Ford Motor Credit's ratings by two notches to Ba2, from Baa3.