Ford Gets Its Logo Out of Hock

Speaking of logos:

In 2006, Ford pledged its famous logo, along with virtually all of its U.S. assets, as collateral to secure a $23.5 billion loan to restructure its ailing business. At the time, Ford was criticized for betting the company, including all its factories and other trademarks like Mustang and F-150, to take on more debt, but the loan ended up being Ford’s savior, providing an important cushion that allowed it to escape bankruptcy a few years later, unlike General Motors and Chrysler Group.

Under terms of the loan, all collateral would be released when two of the three major credit rating agencies restored Ford’s debt rating to investment grade. Standard & Poor’s upped its rating on Ford a few weeks ago. Today, Moody’s did the same, raising Ford’s senior unsecured ratings to Baa3 from Ba2 and Ford Credit to Baa3 from Ba1.

Sure hope I never have to hock #4a525a.

Tuesday, 22 May 2012