On June 20, 2008, Standard&Poor's Ratings Services placed its ratings on Ford Motor Co. and its units on CreditWatch with negative implications. The CreditWatch reflects our decision to review Ford's ratings in light of the financial damage being inflicted by deteriorating U.S. industry conditions, largely as a result of high gasoline prices. The review, which we are also undertaking on other rated U.S. automakers, was prompted by renewed concerns about Ford's future cash outflows in light of the prospects for U.S. sales for the rest of 2008 and into 2009. The erosion of demand for SUVs and pickups has been particularly troubling. Although these segments have been weak for some time, the exodus of demand that began in
