S&P lowers Ford

Standard & Poor's said it lowered its corporate credit ratings on Ford Motor Co., Ford Motor Credit Co. and all related entities to BB-/B-2 from BB+/B-1 and removed them from CreditWatch, where they were placed on Oct. 3 with negative implications.

The outlook is negative.

S&P said the downgrade reflects its increased skepticism about Ford's ability to turn around the performance of its North American automotive operations, a process that will require, at best, a number of years.

Even so, the agency added Ford's still-substantial liquidity will continue to provide considerable protection against the risk of financial distress for the next few years, but Ford is highly subject to the pricing actions of competitor General Motors Corp. (B/negative/B-3) and could suffer from further turmoil at GM.

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