Fitch upgrades Ford

Fitch Ratings said it upgraded the long-term issuer default ratings of Ford Motor Co. and its subsidiaries to BB- from B. It also upgraded Ford's senior secured credit facility and senior secured term loan to BB+ from BB/RR1, Ford's senior unsecured debt to B from CCC/RR6, Ford Motor Co. Capital Trust II's subordinated convertible debentures to B- from CC/RR6 and Ford Holdings, Inc.'s senior unsecured debt to B from CCC/RR6.

The remaining ratings were affirmed, including the BB- senior unsecured debt ratings of FCE Bank plc, Ford Motor Credit Co. LLC, Ford Capital BV, Ford Credit Canada Ltd., Ford Credit Co. SA de CV and Ford Motor Credit Co. of New Zealand and the companies' B short-term issuer default ratings.

The outlook is stable.

The agency said Ford's ratings reflect its continued strong financial performance and the substantial debt reduction accomplished in the second quarter, both of which outperformed Fitch's previous expectations.

Weighing on Ford's ratings are a still-high debt load, substantial pension and other post-employment benefits obligations and ongoing uncertainty regarding the strength and pace of the global economic recovery, Fitch said.

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