Fitch Affirms Ford & Ford Credit Ratings; Outlook Negative

    NEW YORK--May 22, 2001--Fitch has affirmed the debt ratings of Ford Motor Company (Ford), Ford Motor Credit Company (Ford Credit), Hertz Corporation and their respective subsidiaries after Ford announced a broadened recall of vehicles with Firestone all-terrain tires. The Rating Outlook has been changed to Negative from Stable. Approximately $167 billion of debt and preferred securities are affected by this action.
    The costs of the broadened recall will lower second quarter after-tax profit by $2.1 billion. Fitch believes this will translate into lower fiscal 2001 operating cash flow. The suspension of the share repurchase program will provide offset to the cash effect of this transaction. Ford has $2.8 billion remaining in the $5 billion share repurchase program that Fitch previously expected Ford to complete in 2001. Fitch notes that the recall does slightly diminish Ford's near-term financial flexibility, as suspending share repurchases was previously a potential cash flow offset if industry demand soon dropped sharply.
    Fitch's main concern is the impact that the broadened recall may have on the brand image of the Explorer, an important profit contributor for Ford, and other Ford products. Fitch expects Ford to incur more marketing costs to continue launching the recently redesigned Explorer, while residual values of Ford Credit's current lease portfolio will likely be pressured. Also, repercussions of the bitter rupture of the relationship between Ford and tire supplier Firestone may extend beyond potential brand image damage or potential higher tire costs for future sourcing from other tiremakers to heightened litigation risk.

    The ratings are as follows:

Ford Motor Company
--Notes and debentures `A+';
--Preferred stock `A'.

Ford Motor Co. Capital Trust 1
--Preferred Securities `A'.

Ford Motor Credit Company
--Commercial paper `F1';
--Notes and debentures `A+';
--Subordinated notes `A'.

Hertz Corporation
--Commercial paper `F1'.

Ford Holdings, Inc. (USA)
--Unsecured notes `A+'.

FCE Bank plc (England)
--Commercial paper `F1';
--Notes and debentures `A+'.

Hertz Finance Centre plc
--Commercial paper `F1'.

Ford Capital B.V. (The Netherlands)
--Notes and debentures `A+'.

Ford Credit Canada Ltd.
--Commercial paper `F1';
--Unsecured notes `A+'.

Hertz Canada Ltd.
--Commercial paper `F1'.

Ford Motor Co. of Australia
--Unsecured notes `A+'.

Ford Credit Australia Ltd.
--Commercial paper `F1';
--Unsecured notes `A+'.

Hertz Australia Pty. Ltd.
--Commercial paper `F1'.

Primus Financial Services (Japan)
--Commercial paper `F1'.
--Medium-term notes `A+'.

Ford Motor Co. S.A. de C.V. (Mexico)
--Commercial paper `F1';
--Unsecured notes `A+'.

Ford Motor Credit Co. of New Zealand Ltd.
--Commercial paper `F1';
--Unsecured notes `A+'.

Ford Motor Credit Co. of Puerto Rico, Inc.
--Commercial paper `F1'.

Ford Motor Co. Equipment Trust 1991-F
--Guaranteed notes `A+'.

Ford Motor Co. Equipment Trust 1991-H
--Guaranteed notes `A+'.