S&P keeps Ford on negative watch

Standard & Poor's said its BB+ long-term and B-1 short-term ratings on Ford Motor Co., Ford Motor Credit Co. and all related entities will remain on CreditWatch with negative implications following Ford's announcement of weak third-quarter earnings.

Ford's ratings were placed on CreditWatch negative on Oct. 3. Hertz Corp.'s ratings were placed on CreditWatch negative on Sept. 13, pending completion of Ford's plan to divest Hertz.

S&P said the CreditWatch reflects S&P's increased concerns about Ford's ability to effect a turnaround at its troubled North American automotive operations amid a sharply deteriorating product mix and sales volume, and prospects for persisting severe pricing pressure.

S&P noted that it plans to resolve this CreditWatch following Ford's announcement of its fourth-quarter results and the agency presently believes the rating is unlikely to be lowered below BB/B-2.

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