Ford 2009 Annual Report Download - page 55

Management’s Discussion and Analysis of Financial Condition and Results of Operations
Ford Motor Company | 2009 Annual Report 53
Credit Ratings. Our short-term and long-term debt is rated by four credit rating agencies designated as NRSROs by
the SEC:
• DBRS Limited ("DBRS");
• Fitch, Inc. ("Fitch");
• Moody's Investors Service, Inc. ("Moody's"); and
• Standard & Poor's Ratings Services, a division of The McGraw-Hill Companies, Inc. ("S&P").
In several markets, locally recognized rating agencies also rate us. A credit rating reflects an assessment by the rating
agency of the credit risk associated with a corporate entity or particular securities issued by that entity. Their ratings of us
are based on information provided by us and other sources. Credit ratings are not recommendations to buy, sell or hold
securities and are subject to revision or withdrawal at any time by the assigning rating agency. Each rating agency may
have different criteria for evaluating company risk and, therefore, ratings should be evaluated independently for each rating
agency. Lower credit ratings generally result in higher borrowing costs and reduced access to capital markets.
The following rating actions have been taken by these NRSROs since October 1, 2009:
Ford On November 2, 2009, DBRS placed Ford's long-term credit ratings under review with positive implications;
Fitch revised Ford's outlook to positive from stable; and Moody's raised Ford's corporate rating to B3 from
Caa1, its senior unsecured rating to Caa1 from Caa2, and its senior secured rating to Ba3 from B1.
Moody's outlook for Ford remains stable.
On November 3, 2009, S&P upgraded Ford's corporate rating to B- from CCC+, its senior secured rating to
B- from CCC+, and its senior unsecured rating to CCC from CCC-. S&P's ratings outlook for Ford remains
stable.
On December 1, 2009, DBRS upgraded Ford's issuer Rating to B(low) from CCC(high) and upgraded Ford's
senior secured rating to B(high) from B(low). DBRS' outlook for Ford remains stable. Also on December 1,
Fitch Ratings upgraded Ford's senior secured rating to B+ from B, with a positive outlook.
On January 11, 2010, Fitch upgraded Ford's corporate rating to B- from CCC and the senior secured rating
to BB- from B+; the outlook remains positive.
Ford Credit On November 2, 2009, DBRS placed Ford Credit's ratings under review with positive implications; Fitch
revised Ford Credit's outlook to positive from stable; and Moody's upgraded Ford Credit's senior unsecured
rating to B3 from Caa1 while keeping its credit ratings under review for a possible upgrade.
On November 3, 2009, S&P upgraded Ford Credit's senior unsecured rating to B- from CCC+ with a stable
outlook.
On December 1, 2009, DBRS upgraded Ford Credit's corporate and senior unsecured ratings to B from B
(low) with a stable outlook.
On January 11, 2010, Fitch upgraded Ford Credit's corporate rating to B- from CCC, the senior unsecured
rating to B+ from B, and the short-term rating to B from C; the outlook remains positive.
The following chart summarizes certain of the credit ratings and the outlook presently assigned to Ford and Ford Credit
by these four NRSROs:
NRSRO RATINGS
Ford Ford Credit
Issuer Default/
Corporate/
Issuer Rating
Long-Term
Senior
Unsecured
Senior
Secured
Outlook /
Trend
Long-Term
Senior
Unsecured
Short-Term
Unsecured
Outlook /
Trend
DBRS B (low) CCC B (high) Stable B R-5 Stable
Fitch B- CC BB- Positive B+ B Positive
Moody's B3 Caa1 Ba3 Stable B3 NP Review
S&P B- CCC B- Stable B- * NR Stable
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* S&P assigns FCE a long-term senior unsecured rating of B, maintaining a one notch differential versus Ford Credit.