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Ford Credit Australia CP Rated 'F1' by Fitch IBCA

5 August 1998

Ford Credit Australia CP Rated 'F1' by Fitch IBCA - Fitch IBCA -

    NEW YORK, Aug. 5 -- Fitch IBCA assigns its 'F1' rating to the
commercial paper program of Ford Credit Australia, a wholly owned subsidiary
of Ford Motor Credit Co. of Dearborn, MI (Ford Credit).  Ford Credit also
guarantees all payments on the commercial paper program of Ford Credit
Australia.
    With over $135 billion in managed receivables, Ford Credit's primary
mission is to support the unit sales of Ford Motor Co. (Ford) through retail
and wholesale financing channels.  Ford Credit's ratings reflect its ownership
by Ford, strong relationship with Ford dealers, maintained market share in a
competitive environment, and ample liquidity and accessibility to capital
markets.  Concerns center on the increased level of losses in the retail auto
portfolio, declining margins due to intense industry pressure, and increased
depreciation expense on the leasing portfolio.
    Although Ford Credit's profitability measures have fluctuated, the company
had its sixth consecutive year of earnings above $1 billion in 1997.  Ford
Credit continues to contribute significant dividends to Ford while still
maintaining a solid balance sheet.  Although Fitch IBCA believes that Ford
Credit will remain profitable, operating earnings are likely to remain below
highs reached in the mid-1990s.
    Ford Credit Australia's principal business is providing financing for a
number of authorized Ford Motor Co. of Australia Limited dealers and other
dealers, providing retail purchase and lease financing for customers of such
dealers, and providing financing to fleet users for the lease or purchase of
vehicles.  The issuer commenced financing dealer business in April 1972.
Similar to the U.S., the business of Ford Credit Australia is dependent upon
the production and sale of Ford vehicles, as well as the credit quality within
the receivables portfolio.