S&P: Ford unchanged

Standard & Poor's said its ratings on Ford Motor Co. (B/negative/B-3) and related entities will not be affected by Ford's announcement of an equity conversion offer for its $5 billion in 6.5% cumulative convertible trust preferred securities.

The agency said it views the conversion as a slight positive for Ford's credit quality.

The conversion of preferred securities into equity will reduce Ford's cash interest burden, the total savings will depend on how many holders elect to convert, S&P added.

The securities, which were issued in 2002 by Ford Motor Co. Capital Trust II, are rated CCC-, four notches below Ford's corporate credit rating, the agency said.

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