Ford reports the following information from its Management Discussion and Analysis section of its \(200710-\mathrm{K}\) report.

a. What financial ratios do credit rating companies such as the four NRSROs listed above, use to evaluate the relative riskiness of borrowers?

b. Why might a reduction in credit ratings result in higher interest costs and restrict Ford's access to credit markets?

c. What type of actions can Ford take to improve its credit ratings?

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Ratings Our short- and long-term debt is rated by four credit rating agencies designated as nationally recognized statistical rating organizations ("NRSROS") by the Securities and Exchange Commission: Dominion Bond Rating Service Limited ("DBRS"); Fitch, Inc. ("Fitch"); Moody's Investors Service, Inc. ("Moody's"); and Standard & Poor's Rating Services, a division of The McGraw-Hill Companies ("S&P"). Lower credit ratings generally result in higher borrowing costs and reduced access to capital markets. The NRSROS have indicated that our lower ratings are primarily a reflection of the rating agencies' concerns regarding our automotive cash flow and profitability, declining market share and product portfolio strength, excess industry capacity and industry pricing pressure. The following ratings actions were taken in the fourth quarter 2007: Ford DBRS: In November 2007, DBRS changed Ford's trend to "Stable" from "Negative." Fitch: No ratings actions taken in Q4 2007. Moody's: In November 2007, Moody's changed Ford's outlook to "Stable" from "Negative." S&P: In November 2007, S&P changed Ford's outlook to "Stable" from "Negative." Ford Credit . DBRS: In November 2007, DBRS changed Ford Credit's trend to "Stable" from "Negative." Fitch: No ratings actions taken in Q4 2007. Moody's: In November 2007, Moody's changed Ford Credit's outlook to "Stable" from "Negative." S&P: In November 2007, S&P changed Ford Credit's outlook to "Stable" from "Negative."