Moody’s lifts Ford Credit de Mexico

Moody’s Investors Service said it upgraded Ford Credit de Mexico SA de CV, Sofom ENR’s long-term global local-currency senior debt rating to Baa2 from Baa3.

The agency also said it upgraded by one notch the long- and short-term Mexican national scale debt ratings to Aa2.mx and MX-1, respectively.

The outlook is stable.

The upgrades reflect a similar action taken on the ratings of its parent company and guarantor, Ford Motor Credit Co. LLC, Moody’s said.

The ratings on Ford Credit de Mexico are based on the standalone credit profile to the equivalent of a Ba2 rating, as well as the implicit and explicit support of its parent, Ford Motor Co., whose senior unsecured rating was upgraded to Baa2.

Ford Credit is a monoline finance company with significant ownership, support and business ties with Ford Motor, the agency said.

In turn, the debt ratings of Ford Credit de Mexico reflect a full, irrevocable and unconditional guarantee by Ford Credit, which meets eight out of nine core principles for credit substitution set out by the agency, Moody’s said.

The ratings also consider the strategic fit and importance of Ford Credit de Mexico’s operation for Ford Credit and Ford Motor, along with the fact that the companies share the name, the agency said.

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