Ford Bonds at Seven-Month High

Ford Motor Co. bonds rose to the highest in almost seven months a day after Standard & Poor’s raised the automaker’s credit rating to reflect the completion of a $9.9 billion debt reduction.

Ford Motor Credit Corp.’s $1.5 billion of 8 percent notes due in 2016 climbed 1.4 cents to 71.5 cents on the dollar at 10 a.m. in New York, the highest level since Sept. 19, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority. The securities have surged 59 percent since March 5.

Ford, the only U.S. automaker to forgo federal government aid, said on April 6 that it cut debt by 38 percent through buybacks of term loans and bonds. The Dearborn, Michigan-based company said the reductions will cut annual interest costs by more than $500 million. More at Bloomberg