New York (AP) - Moody's Investors Service on Monday raised its corporate family rating for Ford Motor Co. to "B3" from "Caa1," citing the progress the automaker has made toward improving its product portfolio and cost structure while preserving its cash reserves.
 
The ratings service also raised Ford's probability of default rating to "B3" from "Caa3," secured credit facility to "Ba3" from "B1," unsecured debt to "Caa1" from "Caa2," and trust preferred stock to "Caa2" from "Caa3."
 
Moody's backed Ford's speculative grade liquidity rating at "SGL-3," which indicates adequate liquidity for the next 18 months. The outlook is stable.
 
Moody's also raised the senior long-term rating of Ford Motor Credit Co., the automaker's finance subsidiary, to "B3" from "Caa1" and placed its ratings under review for another possible upgrade.
 
Also on Monday, Fitch Ratings revised its outlook on Ford and Ford Motor Credit to positive from stable and affirmed its issuer default rating at' "CCC," citing better-than-expected progress on its cost reductions.
 
As a result of the improvements at Ford, Moody's said it expects the automaker to remain on track to return to profitability by 2011. In addition, the company's $23.8 billion cash position should provide an adequate cash cushion if the recovery in vehicle demand is slower than Ford expects, Moody's said.
 
Earlier on Monday, Ford surprised investors with net income of nearly $1 billion in the third quarter and forecast a "solidly profitable" 2011.