Fitch cuts Ford, Ford Credit

Fitch Ratings said it downgraded the senior unsecured debt ratings of Ford Motor Corp. and Ford Motor Credit Corp. to BBB from BBB+. The outlook is negative.

Fitch also affirmed the F2 commercial paper.

Fitch said the downgrade reflects the impact of sales declines in key product categories, relentless price and product competition and higher commodity prices on Ford's automotive operating profitability.

Despite relatively successful new product offerings, the support provided by healthy F-Series volumes, steady economic growth and solid industry sales volumes, Fitch said Ford nevertheless faces breakeven to modestly negative cash flows in the automotive segment.

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