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Hi all,

I'm looking at Ford Credit's debt structure. Most of the debt is short term secured debt:

Asset-backed commercial paper 13,518 (M)
other asset-backed short-term debt 6,196
Ford Interest- advantage 5,408
unsecured commercial paper 526
other 1,707

My question is in regard to the asset-backed commercial paper. My understanding is that this paper is used for financing of dealer inventories and factory financed vehicles. They borrow short term against the cash flows of the payments.

So, if sales or production go down 30%, it stands to reason that these short term facilities will go down by the same margin. I'm trying to get my mind wrapped around how costly a credit downgrade would be. Most of Ford's debt is long term. The only short term debt is all secured Ford Credit paper.
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