Moody's Downgrades Ford and GM Debt Ratings to Junk; Bank of America Clears Slavery History; Other Corporate and Financial News
Moody's Investors Service has downgraded the debt ratings of General Motors Corp. and Ford Motor Co. to junk, citing their losses in North American operations this year. Meanwhile, Bank of America Corp. has found no evidence of profiting from slavery in its predecessor institutions' histories. Other corporate news includes Saks Inc.'s decision to repay vendors $48.2 million, Cond Nast Publications' new business magazine, and lawsuits from FTD Group and Johnson Controls.
Key Takeaways:
- Moody's Investors Service has downgraded General Motors Corp.'s debt rating to Ba2, two levels below investment grade, and Ford Motor Co.'s rating to Ba1, one level below investment grade.
- The downgrade affects approximately $150 billion in debt for Ford Motor Co.
- Bank of America Corp. has conducted a report through Heritage Research Center Ltd. and found no evidence of profiting from slavery in its predecessor institutions' histories.
- Saks Inc. has agreed to repay vendors $48.2 million after improperly collecting markdowns over an eight-year period.
- Saks Fifth Avenue, a unit of Saks Inc., will return over $34.2 million to vendors.
- Cond Nast Publications is launching a new monthly business magazine, with no launch date announced.
- FTD Group has sued rival flower delivery service ProFlowers for alleged false and misleading advertising.
- Johnson Controls Inc. is acquiring York International Corp. for approximately $2.4 billion.
- SBC Communications Inc. will offer Yahoo!'s music service to its nearly 6 million high-speed Web subscribers.
- Mitsubishi Motors and the United Auto Workers have agreed to a tentative contract extension at the company's Normal, Ill. plant.
- Renal Care Group Inc. shareholders have voted to approve a $3.5 billion buyout by Fresenius Medical Care AG of Germany.
Statistics:
- Moody's has downgraded General Motors Corp.'s debt rating to Ba2.
- Ford Motor Co.'s debt rating has been downgraded to Ba1.
- The Moody's downgrade affects approximately $150 billion in debt for Ford Motor Co.
- Saks Inc. will repay vendors $48.2 million.
- Saks Fifth Avenue will return over $34.2 million to vendors.
- Johnson Controls Inc. will assume approximately $800 million in York International's debt.
- SBC Communications Inc. will offer Yahoo!'s music service to its nearly 6 million high-speed Web subscribers for $4.99 a month (annual subscription) or $6.99 a month (monthly basis).
- The Johnson Controls-York International deal is worth approximately $2.4 billion.
- Renal Care Group Inc. serves 31,900 patients at more than 450 outpatient dialysis facilities.
Sources:
- Associated Press: "Moody's cuts Ford, GM debt ratings to junk"
- Bloomberg News: "Moody's Downgrades Ford, GM Credit Ratings to Junk"
- Associated Press: "No slavery profiting is found in bank's past"
- Bloomberg News: "Bank of America Clears Slavery History in $2.5 Billion Review"
- Associated Press: "Saks to repay vendors $48 million"
- Bloomberg News: "Saks to Repay Vendors $34.2 Million"
- Associated Press: "Cond Nast to start business magazine"
- Bloomberg News: "Cond Nast to Launch Monthly Business Magazine"
- Associated Press: "FTD Group sues flower rival"
- Bloomberg News: "FTD Group Sues Provide Commerce Over Advertising Claims"
- Associated Press: "Johnson buys ventilation, air conditioning equipment maker York International"
- Bloomberg News: "Johnson Controls to Buy York International for $2.4 Billion"
- Associated Press: "SBC adds Yahoo music"
- Bloomberg News: "SBC to Offer Yahoo!'s Music Service to High-Speed Subscribers"
- Associated Press: "Mitsubishi, UAW agree to contract extension"
- Bloomberg News: "Mitsubishi Motors, UAW Reach Tentative Labor Accord"
- Associated Press: "Renal Care holders agree to acquisition"
- Bloomberg News: "Fresenius Medical Care AG to Buy Renal Care Group for $3.5 Billion"