Ford lost its investment grade status in 2005 when replica handbags chanel it was racking up billions in losses as the SUV and truck boom went bust. The company mortgaged most of its assets, including the highly recognized oval, to borrow $23.5 billion the following year. That allowed Ford to revamp its cars and trucks and -- unlike rivals GM and Chrysler -- avoid bankruptcy protection.
Investment grade means a company's debt has a low risk of default, while junk status is considered poor credit quality. Companies with investment grade credit ratings generally pay lower interest on debt.
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