Fitch cuts Primus Leasing to BB-(tha)

Fitch Ratings said it downgraded Primus Leasing Co. Ltd.'s national rating of guaranteed notes issued under its medium-term note programs to BB-(tha) from BB+(tha).

The outlook remains negative.

This action follows Fitch's downgrade on both Ford Motor Credit Co.'s and Ford Motor Co.'s long-term issuer default ratings to B- from B.

The outlook remains negative.

Primus's rating is based on the full, irrevocable and unconditional guarantee given by Ford Credit and the creditworthiness of Primus's ultimate parents, Ford and Ford Credit, Fitch said.

Fitch said it downgraded the ratings following further deterioration in Ford's U.S. sales as a result of economic conditions, an adverse product mix and the most recent jump in gas prices.

Fitch also said it is concerned by Ford Credit's portfolio deterioration, reduced access to capital to support financing requirements and escalating commodity costs that remain a significant offset to cost reduction efforts.

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