U.S. automaker Ford has a two-year track record of profits and cash flow generation in its global automotive operations, supported by strong performance in North America. We believe that as a gradual market recovery continues in North America, Ford's global automotive operations will generate at least mid-single-digit pretax margins and positive automotive operating cash flow (after subvention and separation payments) of at least $5 billion in 2011. We estimate that debt reduction and earnings recovery (but also a higher pension obligation) will lead to adjusted debt to EBITDA of about 3x in 2011 and that cash balances will be more than $23 billion. We are placing our 'BB-' corporate credit rating on Ford, as well as our ratings on other
