Ford: I'm Ok - Financialy That Is

Ratings are affirmed despite negative report

ASSOCIATED PRESS

Dearborn March 8, 2003; The AP reported that Ford Motor Co. said yesterday that its finances are sound and its revitalization plan is on track despite an analyst report that the world's No. 2 automaker could be forced into bankruptcy.

In a recent edition of Grant's Interest Rate Observer, Sean Egan of the independent credit rating agency Egan-Jones offered eight reasons a bankruptcy filing was a possibility for Ford, including multibillion-dollar pension fund liabilities and other obligations.

A London newspaper reported a similar story Friday.

"If it didn't have the name Ford, it would be in bankruptcy right now," Egan told Grant's.

Ford spokeswoman Marcey Evans said Friday that Egan's analysis was "seriously flawed" and that Ford is "fundamentally strong."

Evans said Ford has $25 billion in cash, has gained market share in the United States and continues to reduce costs. On the automotive side, she said, the company's debt payments amount to $1 billion in the next five years.

Ford, which is more than one year into a 5-year revitalization program, has continually said its pension obligations are manageable.

In response to market rumors that a downgrade may be forthcoming