Fitch upgrades Ford

Fitch Ratings said it upgraded the issuer default ratings of Ford Motor Co. and its captive finance subsidiary, Ford Motor Credit Co. LLC to BB+ from BB.

The outlook for both companies is positive.

The upgrades reflect the automaker's strong financial performance and continued debt reduction through the first nine months of 2011, Fitch said, as well as the recent completion of the United Auto Workers labor agreement.

Light vehicle sales through September 2011 are somewhat lower than expectations, but continued net pricing strength and Ford's lower post-recession cost structure continue to allow the company to produce relatively strong margins and free cash flow, the agency said.

Looking ahead, Fitch said it expects slowly strengthening global automotive demand and competitive product portfolio to drive continued cash flow strength.

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