Bond Ford Credit 4.389% ( US345397XU23 ) in USD

Issuer	Ford Credit
Market price	99.784 % ▼
Country	United States
ISIN code	US345397XU23 ( in USD )
Interest rate	4.389% per year ( payment 2 times a year)
Maturity	07/01/2026
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Minimal amount	/
Total amount	/
Cusip	345397XU2
Standard & Poor's ( S&P ) rating	BBB- ( Lower medium grade - Investment-grade )
Moody's rating	Ba1 ( Non-investment grade speculative )
Next Coupon	07/01/2026 ( In 112 days )
Detailed description	Ford Motor Credit Company (FMC) is a captive finance subsidiary of Ford Motor Company providing financial products and services, including vehicle financing and leasing, to Ford and Lincoln brand customers. This financial analysis focuses on a specific bond issued by Ford Motor Credit Company, identified by the ISIN US345397XU23 and CUSIP US345397XU2. Ford Motor Credit Company, a wholly-owned subsidiary of Ford Motor Company, operates as the primary financial services arm of the automotive giant, providing wholesale financing to dealers and retail financing for vehicle purchases and leases to consumers; this role is integral to facilitating Ford's sales volumes and managing its global inventory, underpinning a significant portion of its overall business model and contributing directly to the parent company's financial performance. The bond in question is a U.S.-issued debt instrument denominated in USD, carrying an annual coupon rate of 4.389%; interest payments are scheduled semi-annually, reflecting the common practice for corporate bonds. The bond is set to mature on July 1, 2026, at which point the principal amount will be repaid to bondholders. Currently, the bond is quoted on the market at a price of 99.232% of its par value, indicating it trades at a slight discount. From a credit risk perspective, the bond carries a split rating from major agencies: Standard & Poor's assigns a BBB- rating, which places it at the lowest rung of investment grade, suggesting adequate capacity to meet financial commitments but with heightened sensitivity to adverse economic conditions, while Moody's rates the bond Ba1, categorizing it as speculative grade or 'junk bond' territory, one notch below investment grade, a divergence that highlights varying interpretations of the issuer's credit profile among leading credit rating agencies.