Ratings agency Moody's Investors Services said Wednesday it is considering upgrading Ford Motor Co.'s debt, on news of the company's tentative four-year labor agreement with the United Auto Workers.

Wall Street cheered the news, sending Ford's stock up 4.8 percent, to $10.56. It's still down 44 percent over its 52-week high of $18.97, according to The Detroit News.

The credit rating agency is also considering a change in General Motors Co.'s credit rating.

Last week, rating agency Standard & Poor's upgraded GM's credit rating in response to the company's new four-year-labor deal. This week, S&P reiterated that it plans to upgrade Ford, if hourly workers approve a similar deal.

Moody's is considering an upgrade of Ford's debt, as well as its finance company, Ford Motor Credit. Both are rated sub-investment grade or "junk" status. Ford executives have placed a priority on getting the stock back to investment grade.

"Ford has built a much stronger operating model and financial profile during the past year. We want to determine if it can maintain this position if market conditions become more difficult," said Bruce Clark, Moody's senior vice president.

Clark said "we are going to look at Ford and GM side-by-side."

Chrysler Group LLC has not yet agreed to a tentative pact. It is not publicly traded, but eventually intends to hold an initial public stock offering.

Investors have been bearish on auto stocks and have pummeled GM stock in recent months. GM closed below $20 a share for the first time on Monday and is down 33 percent over its $33 initial public offering price. GM was up 4 percent Wednesday to $22.27.

Morgan Stanley auto analyst Adam Jonas wrote in a research note Wednesday that investors should be cautious. "Trading auto stocks in this macro environment is like playing ping-pong in a hurricane," he wrote.

Moody's said its initial review of Ford's UAW contract should allow Ford "to maintain its operating flexibility, fixed cost position, break-even point and liquidity position near current levels."

Last week, S&P said it was upgrading GM's corporate credit rating to "BB+" from "BB-" — one notch below investment grade — and it revised GM's outlook for future ratings to stable from positive.