Ford Motor Co.'s unsecured corporate debt actually tightened on the news that Standard & Poor's downgraded it to BBB-'. According to bank analysts, removing Ford from negative watch was more significant than the downgrade, as it wiped out the fear that Ford would slip below investment grade, at least for the near term.

While there was little trading reported, Ford ABS would, at most, trade one basis point wider from the corporate downgrade, said one syndicate official. "If they were to bring a deal next week, it would fly out the door," the official said.

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