Ford Motor Credit Kicks Off First Bond Sale After Rating Upgrade

(Bloomberg) -- Ford Motor Credit Co. is tapping the investment-grade bond market for the first time after being upgraded earlier this week.

The automaker is looking to sell notes in as many as two parts, according to a person with knowledge of the matter. The longest portion of the offering, a 10-year security, may yield 2.85 percentage points above Treasuries, said the person, who asked not to be identified as the details are private.

Bank of America Corp., Citigroup Inc., JPMorgan Chase & Co., Mizuho Financial Group Inc., NatWest Markets and Sumitomo Mitsui Financial Group Inc. are leading the deal.

Ford Motor Co. received its second credit upgrade this week, marking the automaker’s return to investment-grade status after its downgrade to junk in 2020. S&P Global Ratings raised the Dearborn, Michigan-based company’s rating to BBB- from BB+, the ratings firm said in a release Monday.

Read more: Junk Market Shrinks Most in 18 Years After Ford Wins Upgrade (2)

A representative for Ford didn’t immediately provide a comment.

Blue-chip corporates are seizing one of the last windows of opportunity this year to raise fresh capital in US bond markets, resigning themselves to tougher financing conditions as the cheap-money era fades into history. The Federal Reserve held rates at a 22-year high for a second straight meeting Wednesday.

Read More: Companies Ready $100 Billion of Bond Sales as Fed Skips Hike

At least three issuers were considering selling bonds in the US high-grade primary market on Thursday, according to an informal survey of debt underwriters, who declined to name the firms.

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