S&P: Ford, Ford Credit unaffected

Standard & Poor's said that the ratings and outlook on Ford Motor Co. and Ford Motor Credit Co. (both rated BB+/negative/B-1) are not immediately affected by Ford's announcement of an agreement to sell its Hertz Corp. unit (BBB-/Watch negative/A-3) to an investor group.

S&P said the sale will bolster Ford's liquidity, in that Ford will receive $5.6 billion in cash for its equity stake in Hertz. Also, while Ford Credit will tender to exchange $2.4 billion of Hertz debt for new debt of Ford Credit - with similar terms and maturities (ranging between 2010 and 2028) - the buyers of Hertz will pay Ford Motor Credit cash for any Hertz debt securities that are exchanged.

However, S&P said it has already viewed Ford's liquidity as more than sufficient to provide protection against near-term financial stress.

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