S&P upgrades FCE Bank

Standard & Poor's said it revised the stand-alone credit profile of FCE Bank plc to BBB- from BB+ and maintained the CreditWatch with positive implications on the bank's BB counterparty credit and senior debt ratings.

The rating upgrade primarily reflects a view that the bank's business position benefits from the strengthening credit profile of its ultimate owner, S&P said.

As Ford's European captive automotive finance company, FCE Bank's strategy is fully aligned with that of its parent and is focused on supporting Ford vehicle sales across Europe, as well as promoting customer loyalty and adding shareholder value to its parent, the agency said.

As a result, the business ties between FCE Bank and its corporate parent, including in terms of activity levels, are significant, S&P said.

Ford's previously weaker credit profile is no longer weighing negatively on FCE Bank's prospects in its core markets, the agency added.

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