Credit Suisse upgrades Ford’s rating

Ford Motor Co. got a rating upgrade to neutral from Credit Suisse, as the automaker works to regain the investment grade status it last held in 2005.

The rating agency had Ford at underperform but upgraded the automaker for being a stronger company than it was a year ago, despite fourth-quarter earnings that did not meet analysts' expectations.

"Since late April 2010, a number of things have changed," Credit Suisse analyst Christopher Ceraso write in a report released today.

"Ford has demonstrated earnings power that is substantially greater than was anticipated at the time," Ceraso said in raising the 12-month price target for the stock to $18 from $17.

Ceraso said Ford's balance sheet is much stronger than it was a year ago with net debt of about $2 billion, down substantially from $15 billion last April.