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TEXT-S&P cuts ratings on Argon Capital's notes to BBB from BBB+

(The following statement was released by the ratings agency).

LONDON, Oct 29 - Standard & Poor's Ratings Services said today it lowered its credit ratings on the notes issued in two repackaged securities transactions to 'BBB' from 'BBB+'. At the same time, the ratings were removed from CreditWatch, where they had been placed on Oct. 17, 2002 (see list below).

The action follows the lowering of the senior unsecured debt ratings on Ford Motor Co. (BBB/Negative/A-2) and its financial subsidiary, Ford Motor Credit Co. (BBB/Negative/A-2). The debt rating on Ford Motor Co. acts as a supporting rating to the notes issued by Argon Capital PLC. The debt rating on Ford Motor Credit Co. acts as a supporting rating to the notes issued by Repackaged Offshore Collateralised Kredit (Rock) Two Ltd. Argon Capital and Rock Two are repackaged securities transactions.

The downgrade of Ford's senior unsecured debt ratings reflects concerns about the adequacy of its restructuring measures, implemented to restore the competitiveness of its core automotive operations.

The ratings on Ford could be lowered further if at any point Standard & Poor's doubts that Ford will be able to sustain some earnings improvement, including the achievement of at least breakeven pretax earnings in its automotive operations (excluding Ford Credit) in 2003.

Any future rating action on Ford could affect the ratings on the notes issued by Argon Capital or Rock Two in their respective repackaged transactions.