Fitch cuts Primus Leasing notes to B-(tha)

Fitch Ratings said it downgraded Primus Leasing Co. Ltd.'s national rating of guaranteed notes, outstanding at 500 million in Thai baht due October 2009, issued under its medium-term note programs to B-(tha) from BB-(tha).

The outlook remains negative.

The action follows a downgrade on both U.S.-based Ford Motor Credit Co.'s and Ford Motor Co.'s long-term issuer default ratings to CCC from B-, Fitch said. Primus is a Thai subsidiary of Ford Credit, which is a guarantor of Primus's debt.

The downgrade on Ford reflects the growing impact of the credit crisis on industry sales volumes, supply chain financial risks, the financial health of dealerships and the capital advantage of transplants, Fitch said.

These issues are compounding the severe stresses resulting from weakening economic conditions and the migration to fuel-efficient vehicles, the agency added.

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