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S&P cuts Ford
Standard & Poor's said it lowered Ford Motor Co. and Ford Motor Credit Co. to B- from B, and removed ratings from CreditWatch, where they were placed with negative implications on June 20.
The agency lowered the counterparty credit rating on FCE Bank plc to B from B+, maintaining the one-notch rating differential with its parent.
The outlook is negative.
S&P said the downgrades reflect mounting cash losses in Ford's North American automotive operations caused by sharply lower U.S. sales and the recent dramatic shift in demand away from large pickup trucks and sports utility vehicles amid higher gas prices and the weak economy.
Ratings reflect the multiple problems the company faces in returning its North American automotive operations to profitability and positive cash generation, the agency said.
Ford's retail market shares in individual product categories have been fairly stable and have grown in some categories, S&P noted.
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