Exhibit 99.4
dbrs.com
Press Release
Ford Motor Credit Company & Ford Motor Credit Canada
Limited
Confirms at BBB (high) & R-1 (low)
Date of Release: April 11, 2005
Issuer Debt Rated Rating Action Rating Trend Notes Latest Event
- ----------------------------------------------------------------------------------------------------------------------------
Ford Credit Canada Limited Commercial Paper (guar. by Confirmed R-1 (low) Stb last rpt. 2004- Apr 11, 2005
Ford Motor Credit Co.) 11-23
Ford Motor Credit Company Commercial Paper Confirmed R-1 (low) Stb last rpt. 2004- Apr 11, 2005
11-23
Ford Credit Canada Limited Senior Long-Term Debt (guar. Confirmed BBB (high) Stb last rpt. 2004- Apr 11, 2005
by Ford Motor Credit Co.) 11-23
Ford Motor Credit Company Senior Long-Term Debt Confirmed BBB (high) Stb last rpt. 2004- Apr 11, 2005
11-23
- -----------------------------------------------------------------------------------------------------------------------------
Dominion Bond Rating Service ("DBRS") has confirmed the ratings of Ford Motor
Credit Company ("Ford Credit" or the "Company") and Ford Motor Credit Canada
Limited ("Ford Credit Canada"), all with Stable trends. Ford Motor Company
("Ford"), Ford Credit's wholly owned parent, announced on April 8, 2005, that
results at its automotive operations are deteriorating and pre-tax profit
excluding special items for the full year in 2005 is expected to be break-even
at best due to worse than expected performance in its North American operations.
Ford continues to lose market share in North America despite the introduction of
a number of new products. In addition, rising material costs and health care
expenses are going to add to margin pressure. Moreover, market conditions are
expected to worsen. The prospect of higher and sustained gasoline prices and
increased use of incentives by competitions will put more pressure on Ford's
automotive operations, particularly in North America. DBRS has confirmed the
ratings of Ford Credit and Ford Credit Canada, all with Stable trends, but has
placed the ratings of Ford "Under Review with Negative Implications", reflecting
the weakening operating results and outlook.
While DBRS's ratings for captive finance companies are typically equivalent to
the credit strength of the operating parent (parent), DBRS policies have always
provided the opportunity whereby a captive finance company (captive) could be
rated higher than the parent. Key general considerations for such an event
include the following:
(1) The value and first claim ability of the captive assets;
(2) The relationship between the captive and the parent;
(3) The stand-alone strength of the captive; and
(4) The level of ratings in the credit spectrum.
Based on an evaluation of these factors and all the related sub-factors, DBRS
has concluded that at the present time, the ratings for Ford Credit and Ford
Credit Canada should be slightly higher than the base ratings for Ford. Along
with these considerations, DBRS continues to heavily weigh the strength of the
parent in assessing the ratings of this and any other captive subsidiary (driven
first and foremost by the captive's heavy dependence on the parent for
products), which meaningfully limits the degree to which captives can be rated
above their respective parent companies.
For more information on this credit or on this industry, visit www.dbrs.com or
contact us at: info@dbrs.com.