Fitch upgrades Ford

Fitch Ratings said it upgraded the issuer default ratings of Ford Motor Co. and Ford Motor Credit Co. LLC to BBB from BBB-.

The outlook is stable.

Also upgraded are Ford Motor’s unsecured revolving credit facility to BBB from BBB- and senior unsecured notes rating to BBB from BBB-.

The agency also upgraded Ford Motor Credit’s long-term issuer default rating to BBB from BBB-, short-term issuer default rating to F2 from F3, long-term senior shelf to BBB from BBB-, senior unsecured rating to BBB from BBB- and commercial-paper rating to F2 from F3.

The upgrades are driven by the automaker's declining financial leverage, improving global product portfolio and commitment to maintaining strong liquidity, Fitch said.

The upgrades also consider expectations for further profitability improvement, particularly outside North America, as a result of the company's product initiatives and operational restructuring, the agency said.

Leverage is expected to decline over the intermediate term as the company repays maturing debt obligations with cash and as earnings, Fitch added.

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