S&P: Ford unchanged

Standard & Poor's said that Ford Motor Co.'s (B-/stable) announcement that it has agreed to sell its Volvo car unit to Zhejiang Geely Holding Group Co. Ltd. will not affect the ratings on Ford and related entities.

Ford said it anticipates signing a definitive sale agreement in the first quarter of 2010, with closing in the second quarter of 2010, and it does not intend to retain an equity stake in Volvo.

S&P said it considers Ford's business risk profile to be vulnerable and its financial risk profile to be highly leveraged.

However, the agency believes the company is showing early signs of progress in reducing its cash use from its automotive operations and in stabilizing, if not improving, its U.S. market share.

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