Ford Holdings, Inc. — Moody’s affirms Ford’s Ba2 senior unsecured and corporate family ratings; Outlook changed to stable.

Rating Action: Moody’s affirms Ford’s Ba2 senior unsecured and corporate family ratings; Outlook changed to stable.Global Credit Research – 29 Mar 2021New York, March 29, 2021 — Moody’s Investors Service, (“Moody’s”) affirmed Ford Motor Company’s Ba2 senior unsecured ratings and corporate family ratings. The outlook is changed to stable from negative.The change in outlook to stable reflects Ford’s record of managing through the Covid- induced impact on auto sales and production volumes by having a strong liquidity position, and Moody’s expectation that Ford’s robust new product launches this year and progress in its ‘Redesign’ initiatives will enable Ford to be on a cadence of improving consolidated EBITA margin to exceed 3% (on Moody’s adjusted basis) by the latter part of 2022.RATINGS RATIONALEThe ratings reflectThe ratings reflect Ford’s competitive position in North American that will be strengthened by a robust new product cadence that includes the launch of the highly profitable F-150 truck in late 2020. The effective launch of Ford’s flagship product is critical, and Moody’s believes that Ford will continue to ensure the most effective roll-out possible. Ford should achieve a low single digit Moody’s-adjusted EBITA margin in 2021 despite the semiconductor shortage. The company’s 2021 EBIT guidance of $8 billion to $9 billion (including Ford Credit and before Redesign charges) could be adversely impacted by $1.0 to $2.5 billion as a result of the semiconductor…