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MT Newswires Mar 23, 7:55 PM UTC

03:55 PM EDT, 03/23/2020 (MT Newswires) -- Fitch Ratings on Monday downgraded its ratings for Ford Motor Company (F) and Ford Motor Credit Company to 'BBB-' from 'BBB' on concerns over the COVID-19 impact on its near-term financial performance and credit profile, with a negative outlook. BBB-minus is the lowest investment grade rating.

"Fitch currently believes the company has the financial flexibility to manage through an extended shutdown of its facilities, but concerns are increasing that a combination of an extended shutdown followed by weak demand in a global recessionary environment could further pressure the company's credit profile," the rating company said.

Fitch said the rating could be cut if the plant shutdowns in North America and Europe are extended for multiple months, while a revision to stable is possible if its operations return to a typical run rate and begins to repay its revolver borrowings.

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