Search
 

Ford Says Rise in Rates May Improve Balance Sheet

Favorable impact on automakers pension shortfall would offset the higher cost of funds.

By Craig Trudell, Bloomberg | Updated on September 17, 2013

Ford Motor Co., now ranked as investment grade by all major credit-ratings companies, said a gradual rise in interest rates would boost its balance sheet and help offset the higher costs to finance car sales.

Rising interest rates are having a “hugely favorable effect” on Ford’s pension obligations, Chief Financial Officer Bob Shanks said today in an interview. Shoring up the pension shortfall, which ratings companies treat as debt, would blunt the impact of higher costs of funds for Ford Motor Credit, the Dearborn, Michigan-based company’s lending unit.

Complete your profile to continue reading and get FREE access to Treasury & Risk, part of your ALM digital membership.

Your access to unlimited Treasury & Risk content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical Treasury & Risk information including in-depth analysis of treasury and finance best practices, case studies with corporate innovators, informative newsletters, educational webcasts and videos, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM websites including PropertyCasualty360.com and Law.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

Treasury & Risk

Join Treasury & Risk

Don’t miss crucial treasury and finance news along with in-depth analysis and insights you need to make informed treasury decisions. Join Treasury & Risk now!

  • Free unlimited access to Treasury & Risk including case studies with corporate innovators, informative newsletters, educational webcasts, and resources from industry leaders.
  • Exclusive discounts on ALM and Treasury & Risk events.
  • Access to other award-winning ALM publications including PropertyCasualty360.com and Law.com.

Already have an account? Sign In Now
Join Treasury & Risk

Copyright © 2024 ALM Global, LLC. All Rights Reserved.