Fitch ups Ford

Fitch Ratings said it upgraded the issuer default ratings for Ford Motor Co. and its captive finance subsidiary, Ford Motor Credit Co., to B from B-. The agency also said it upgraded its senior secured credit facility to BB with a recovery rating of RR1 from BB- with RR1 and senior unsecured rating to CCC with recovery rating of RR6 from CC with recovery rating of RR6.

The outlook remains positive.

The upgrade reflects an expectation that Ford's credit profile will continue to strengthen as the global economy recovers and as the company leverages its competitive product portfolio and improved cost position to increase production and unit sales, Fitch said.

Coupled with Ford's solid price performance, margins are expected to grow over the medium term, driving stronger levels of free cash flow, the agency said.

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