Moody's rates Ford debt Baa3

Moody's de Mexico said it assigned a Baa3 long-term global local-currency senior debt rating with a stable outlook to Ford Credit de Mexico, SA de CV, Sofom, ENR’s fourth issuance of certificados bursatiles (Ford14-2) established for an amount up to Ps. 2 billion and a term of four years. At the same time, Moody's assigned an Aa3.mx long-term senior debt rating to these notes.

The agency said the ratings are based on an irrevocable and unconditional guarantee provided by Ford Motor Credit Co. LLC (Baa3/stable). In turn, Ford Credit's ratings are based on the implicit and explicit support of its parent, Ford Motor Co., as well as the finance company's ba2 baseline credit assessment.

According to Moody’s, Ford Credit's standalone credit strengths include its significant position in retail and wholesale auto finance, effective credit risk management, good asset quality and profitability performance measures, solid capital position and improved liquidity.

The agency said credit constraints include Ford Credit's reliance on wholesale funding and high, though declining, encumbered asset levels.

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