S&P drops Ford

Standard & Poor's said it lowered its senior unsecured debt issue ratings on Ford Motor Co. to CCC+ from B and removed the ratings from CreditWatch with negative implications, where they were placed on Oct. 23.

At the same time, the agency said it affirmed the B corporate credit rating and all other ratings on Ford, Ford Motor Credit Co. and related entities.

According to S&P, the downgrade of the automaker's unsecured issues reflects the significant disadvantage to Ford's unsecured creditors by the planned introduction of $15 billion of secured debt into the capital structure.

The agency added it estimates that the disadvantage to the unsecured debtholders is reflected by priority claims to adjusted assets in the high 20% area, but also by the fact that virtually all of the company's assets will be encumbered.

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