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The Spaminator
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Apr 24, 2012

Apr 24 - Fitch Ratings has upgraded the Issuer Default Ratings (IDRs) for Ford Motor Company (Ford) and its Ford Motor Credit Company LLC (Ford Credit) captive finance subsidiary to 'BBB-' from 'BB+'. The Rating Outlook for both Ford and Ford Credit is Stable. A full list of the rating actions taken on Ford and each of its subsidiaries is included at the end of this release.

The upgrade of Ford's ratings reflects the automaker's significantly improved financial performance, balance sheet repair, and product portfolio improvement that have taken place over the past several years. Since the last recession, Ford's management has been heavily focused on increasing profitability, growing liquidity, lowering debt and reducing the company's pension obligations. Fitch believes that the work that has been accomplished has put the company in a solid position to withstand the significant cyclical and secular pressures faced by the global auto industry. Importantly, the ratings are based on Fitch's projections of the company's performance through the economic cycle, and are predicated on Fitch's expectation that Ford's liquidity position, cost structure and free cash flow generating potential will provide the company with sufficient financial flexibility to maintain an investment-grade credit profile in a period of economic stress.

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