Fitch Ratings expects to assign a 'BBB-' senior unsecured debt rating to Ford Motor Credit Company LLC's (Ford Credit) $1.5 billion 4.207% notes, due April 15, 2016 and $1 billion 3.984% notes, due June 15, 2016 (together 'unsecured notes'), which will be issued to holders of the Ford Upgrade Exchange Linked (FUEL) notes in a mandatory exchange. The final ratings are contingent on the actual exchange of the notes, which is expected to occur on June 6, 2012.
The FUEL notes are backed by asset-backed securities (ABS), which in turn are collateralized by a revolving pool of retail finance receivables purchased by Ford Credit from dealers. However, FUEL notes will be mandatorily exchanged for unsecured obligations of Ford Credit within 10 business days upon Ford Credit's senior unsecured debt receiving at least two investment-grade credit ratings from the top three nationally recognized statistical rating organizations. The exchange is expected to occur on June 6, 2012.
The issuance of the unsecured notes will not result in the generation of any incremental proceeds. The unsecured notes will be automatically issued to the registered holders of the FUEL notes, in exchange for 100% of the outstanding principal amount of the FUEL notes. The unsecured notes will rank equally with Ford Credit's other unsecured obligations.
Fitch expects to assign the following ratings:
Ford Motor Credit Company
--$1.5 billion 4.207% notes, due April 15, 2016 'BBB-';
--$1 billion 3.984% notes, due June 15, 2016 'BBB-'.
Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.
Applicable Criteria and Related Research:
--'Global Financial Institutions Rating Criteria' (Aug. 16, 2011);
--'Finance and Leasing Companies Criteria' (Dec. 12, 2011);
--'Rating Linkages in Parent and Nonbank Financial Subsidiary Relationships' (Nov. 29, 2011).
Applicable Criteria and Related Research:
Global Financial Institutions Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=649171
Finance and Leasing Companies Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=659834
Parent and Subsidiary Rating Linkage
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=647210
ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE.
Contacts:
Fitch Ratings
Primary Analyst (Ford Credit)
Mohak Rao, CFA,
+1-212-908-0559
Director
Fitch, Inc.
One State Street
Plaza
New York, NY 10004
or
Secondary Analyst (Ford
Credit)
Katherine Hughes, +1-312-368-3123
Associate Director
or
Committee
Chairperson (Ford Credit)
Nathan Flanders, +1-212-908-0827
Managing
Director
or
Media Relations
Brian Bertsch, New York,
+1-212-908-0549
brian.bertsch@fitchratings.com