Bangkok--21 Dec--Fitch Ratings Fitch Ratings-Bangkok/Hong Kong/Singapore-21 December 2007: Fitch Ratings (Thailand) has today affirmed the National rating of Primus Leasing Company Limited's (Primus) guaranteed notes issued under its medium-term note programmes at 'BB+(tha)'. The Outlook remains Negative. Primus is a Thai subsidiary of Ford Motor Credit Company (Ford Credit), which is a guarantor of Primus's debt. The ratings are based on the full, irrevocable and unconditional guarantee given by Ford Credit (Long-term Issuer Default Rating (IDR): 'B') and the creditworthiness of Primus's ultimate parents, Ford Motor Company (Ford, Long-term IDR: 'B') and Ford Credit, both of the US. The Outlook for Ford and Ford Credit remains Negative, indicating the possibility of a downgrade on Primus's National rating. A rating Outlook generally indicates the direction a rating is likely to move over a one to two year period. As a financing arm supporting the group's captive brands, Primus is strategically important to Ford's operations in Thailand. Its hire purchase loans declined by 7.5% year on year in 2006, affected by a slowdown in the local automotive industry, with the group's market share declining as a result of competition from its Japanese rivals. The average yield on hire purchase loans has declined owing to increased competition and higher funding costs. Primus's asset quality remained strong with the delinquency (including write-offs) ratio declining to 0.8% in 2006 from about 1% in 2005, backed by its conservative credit origination. Its loan loss reserves stood at 3.6x of its non-performing receivables at end-2006. Although Primus's leverage ratios remain high, the debt to equity ratio fell from 19.4x at end-2004 to 11.2x at end-2006 given its slower debt-funded receivable growth. Fitch's concerns over the company's high leverage are mitigated by the explicit guarantee of the notes by Ford Credit.