Fitch cuts Ford, Ford Motor Credit, deeper into junk

NEW YORK, Oct 6 (Reuters) - Fitch Ratings on Monday cut the issuer default ratings of Ford Motor Co (F.N) and Ford Motor Credit further into junk bond status, citing concerns about the credit market's impact on car sales.

The issuer default rating for both Ford and Ford Motor Credit was cut by one notch to "CCC" from "B-minus," or six levels below investment grade, Fitch said.

"This rating action 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," Fitch said in a statement.

Fitch said that while Ford is the best positioned among the top three U.S. automakers, the overall industry sales volumes are unlikely to trough until 2009.

In the absence of further capital raising, Ford's liquidity could decline to the minimum required level of $10 billion to $12 billion within the next 18 months, said Fitch. (Reporting by Walden Siew; Editing by Jonathan Oatis)