Press Release: Ford Group of Companies

Press Release: Ford Group of Companies
Date of Release: Dec 5, 2001
Confirms at A (low) and R-1 (low)
Kam Hon, David Schroeder / 416-593-5577 ext.2243, ext.2232 / e-mail:
khon@dbrs.com
Ford Motor Company
Rating	Trend	Rating Action	Debt Rated	
A (low)	Stable	Confirmed	Long Term Rating	
R-1 (low)	Stable	Confirmed	Commercial Paper	
Ford Motor Credit Company
Rating	Trend	Rating Action	Debt Rated	
A (low)	Stable	Confirmed	Corporate Rating	
Ford Credit Canada Limited
Rating	Trend	Rating Action	Debt Rated	
A (low)	Stable	Confirmed	Guaranteed Unsecured Senior Notes	
R-1 (low)	Stable	Confirmed	Commercial Paper	

DBRS is confirming the above ratings of Ford Group of companies, ("Ford"
or "the Company") all with Stable trends. The rating action follows the
announcement today by the Company that it expects to incur a loss before
one time items of about $900 million ($0.50 a share) in the 4th quarter
due to rising incentives, higher production costs and increased credit
loss reserves caused by deteriorating economic conditions. The
confirmation recognizes that the Company has a strong balance sheet and
its financial profile still remains reasonable for the rating despite
further deterioration in its operating results. 
Ford's market share and profitability in its core North American market
has been weakening due to intensifying competition, the "Firestone tire
recalls", and more recently, production and quality issues. With market
conditions worsening, profitability is expected to remain under pressure
in the near term. Nevertheless, the Company has a strong franchise and
geographical diversity. DBRS expects the Company's efforts to
restructure its North American operations to be successful, leading to
the eventual recovery of its operating performance. In addition, Ford's
automotive operations continue to be debt free (cash plus VEBA exceeds
debt) as all debt is related to the finance operations, and its action
to reduce dividends, annualized savings of $1.1 billion, also adds to
liquidity. Ford's modest debt maturity schedule, averaging 28 years,
further increases its financial flexibility.
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