Moody's maintains Ford

Moody's Investors Service said it is maintaining its negative outlook on the ratings of Ford Motor Co. (corporate family rating B3) and Ford Motor Credit Co. (senior unsecured rating B1).

The business prospects for the North American auto industry continue to deteriorate as the economy weakens and fuel prices are sustained at record high levels, the agency said.

With product offerings overly weighted in trucks and SUV's, the Big-3 U.S. auto makers, including Ford, are particularly vulnerable in this environment, Moody's noted.

Moody's said that its ratings and outlook for Ford have considered the likelihood that the company will not be able to achieve break-even earnings through 2009 and that the company will continue to experience a combined automotive operating cash burn for 2008 and 2009 that will exceed $12 billion to $14 billion.

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