The blue oval is back home. The Ford Motor Company received a second investment-grade rating on Tuesday, allowing the automaker to reclaim assets ? including the iconic logo ? that it pledged as collateral in a lifesaving loan package in 2006.
Moody?s Investors Service upgraded Ford because of what it described as its strong position in North America and overall financial health. Fitch Ratings made a similar upgrade last month.
Ford put up its logo, headquarters, factories and other assets to qualify for $23.5 billion in loans that helped it survive the recession without needing a government bailout like General Motors and Chrysler. Under the terms of the loan package, Ford had to earn investment-grade ratings from two ratings agencies to get its assets back. The ratings will help lower Ford?s borrowing costs in the future. The more profound impact, however, will be felt on morale at Ford, the nation?s second-biggest auto company.
The company never lost the right to use the insignia on its cars and trucks. But its formal return to the company signals an important milestone in Ford?s turnaround.
