Bangkok--8 Oct--Fitch Ratings Fitch Ratings (Thailand) Limited has today downgraded Primus Leasing Company Limited’s (Primus) National rating of guaranteed notes, outstanding at THB500m due October 2009, issued under its medium-term note programmes to ‘B-(tha)’ (B minus (tha)) from ‘BB-(tha)’ (BB minus (tha)). The Outlook remains Negative. This follows the agency’s downgrade on both US-based Ford Motor Credit Company’s (Ford Credit) and Ford Motor Company’s (Ford) Long-term Issuer Default Ratings (IDRs) to ‘CCC’ from ‘B-’ (B minus). The Outlooks for Ford Credit and Ford remain Negative. Primus is a Thai subsidiary of Ford Credit, which is a guarantor of Primus’s debt. Primus’s rating is based on the full, irrevocable and unconditional guarantee given by Ford Credit and the creditworthiness of Primus’s ultimate parents, Ford and Ford Credit.The rating downgrade on Ford Credit’s and Ford’s Long-term IDRs reflects the growing impact of the credit crisis on industry sales volumes, supply chain financial risks, the financial health of dealerships and the capital advantage of transplants. These issues are compounding the severe stresses resulting from weakening economic conditions and the migration to fuel-efficient vehicles. Plummeting sales volumes will accelerate negative cash flows in H208 and will result in deep cash drains through 2009. Despite significant progress in Ford’s cost reduction efforts and an easing of commodity price pressures, Fitch projects that, without additional capital-raising or asset sales, Ford will reach the minimum required operating cash levels in H209. Ford’s cash position at the end of the second quarter was approximately USD26.6bn. In the absence of further capital-raising, Ford’s liquidity could decline to the minimum required level of USD10bn-USD12bn within the next eighteen months. Potential sources of liquidity include the federal loan guarantee program, renegotiation of the VEBA (Voluntary Employee Beneficiary Association) financing structure and timetable, and very modest levels of external capital and asset sales. Fitch expects that Ford will benefit from a federal loan guarantee program, although the timing, amount, structure, term and pricing are uncertain. Investors should refer to the full release on Ford & Ford Credit on 6 October 2008. Primus’s stand-alone financial performance, while adequate, remains dependent on funding and operational support from Ford Credit. The Negative Outlooks on Ford and Ford Credit indicate the possibility of a further downgrade on Primus’s rating. A rating Outlook generally indicates the direction a rating is likely to move over a one-to-two-year period. Investors should note that a one-notch change in an International rating could result in a change of more than one notch in a National rating. Contact: Patchara Sarayudh, Vincent Milton, Bangkok +662 655 4752/4759, Christopher D. Wolfe +1 212 908-0771