Ford Motor Co. shares rose Monday after reports that it planned to restructure its debt by 38 percent or $9.9 billion to bolster its finances despite economic downturn and low demand.
According to an S&P rating, the outlook for the firm is negative, noting the results of the automaker's recent debt restructuring, the Associated Press reported.
We expect continued heavy cash losses in Ford's automotive operations for at least the next year, S&P credit analyst Robert Schulz said in a statement. The outflows are being caused by weak auto sales in almost every market, but especially in the U.S. and Europe.
The ratings reflect worries that General Motors Corp or Chrysler LLC could file for bankruptcy in the near future, which could increase Ford's cash burn because of the problems it would cause at shared auto suppliers, Schulz said.
Last week, Standard & Poor's Equity Research analyst affirms his Hold on Ford rating has raised it to CCC from SD rating and stocks were up to $4 a share.
Shares rose to 2 cents to 0.47 percent at $4.26 in late afternoon trading.