Ford gets second investment-grade nod from Moody's

DETROIT (Reuters) - Moody's Investors Service upgraded Ford Motor Co to an "investment grade" credit rating on Tuesday, a move that allows the No. 2 U.S. automaker to reclaim its iconic Blue Oval insignia and other collateral pledged during its 2006 crisis.

Moody's boosted Ford's credit rating to Baa3 from Ba2.

Moody's said it was confident that Ford can sustain its strong performance in future downturns despite weakness in the European auto market.

Moody's move comes after Fitch Ratings upgraded Ford to investment grade last month. With the second upgrade, Ford can reclaim the collateral underpinning the $23.5 billion loan the company took in 2006 to fund its turnaround plan.

"When we pledged the Ford Blue Oval as part of the loan package, we were not just pledging an asset. We pledged our heritage," Ford chairman Bill Ford said in a statement.

"Getting the Ford Blue Oval back feels amazing, and it is one of the best days that I can remember."

Ford mortgaged nearly all its U.S. assets to fund its turnaround plan in 2006 when it was viewed as the weakest of the Detroit Three. Six years later, Ford is seen as stronger than its domestic rivals, General Motors Co and Chrysler Group LLC.

(Reporting By Deepa Seetharaman; Editing by Bernard Orr)

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