Fitch rates Ford notes BBB

Fitch Ratings said it assigned a rating of BBB to Ford Motor Co.'s proposed issuance of senior unsecured notes.

The issuer default rating for Ford is BBB with stable outlook.

The proposed notes will be issued in two series due 2026 and 2046.

The proceeds will be used for general corporate purposes, Fitch said.

The agency said it expects the proposed notes will result in a slight increase in leverage, but leverage is expected to remain relatively low for Ford's rating category over the intermediate term.

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

The ratings reflect expectations for further long-term profitability improvement, particularly outside North America, as a result of the company's product initiatives and operational restructuring, the agency said.

Although the issuance will drive Ford's leverage slightly higher than previous expectations, S&P said it expects leverage will remain in a range consistent with Ford's ratings.

The company also has a BBB rating on its unsecured revolving credit facility.

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