Ford's (NYSE:F) Credit Rating Boosted by Standard & Poor's

Standard & Poor's Ratings Services raised their credit rating on Ford Motors (NYSE:F) from a "B+" to "BB-", citing full-year net income and earnings strength in the fourth quarter.

Standard & Poor's credit analyst Robert Schulz said, "The upgrade reflects our reassessment of Ford's business risk profile to fair from weak."

The credit agency also said, "if the global economic recovery, U.S. labor negotiations, and Ford's own performance develop favorably during the next 12 months," they will retain their positive outlook on the company, which could result in further upgrades.

"We could consider raising the rating if we believed its global cash generation from automotive operations during the next year exceeded $4 billion," added Schulz.

Risks include failure to expand its market share in China, rising commodity costs, and too much reliance on their light trucks.

Any slowing in demand would result in Ford being lowered to stable, as it would result in margins being pressured and too much inventory. Overproduction would also be a problem if demand estimates aren't in line with reality.

Ford closed Tuesday at $15.89, losing $0.06, or 0.38 percent.