By Karen Brettell

NEW YORK, June 25 (Reuters) - Ford Motor Co (F.N: Quote, Profile, Research) is likely
to pursue additional debt restructurings that may include a
debt exchange, or a debt to equity swap, as the company burns
through cash and takes on new government loans.

Ford, the only U.S. automaker not to file for bankruptcy
protection this year, is expected to tap government loan
commitments that will increase its debt at the same time as a
pullback in consumer spending is hammering demand for
automobiles.

As the company's leverage, a measure of debt relative to
earnings before interest, taxes, depreciation and amortization
(EBITDA), climbs, Ford may seek to swap debt for new debt at
less than its par value, or exchange bonds for equity.

"We are concerned that the company's leverage may reach
unsustainable levels," Kirk Ludtke, analyst at CRT Capital
Group, said in a report on Thursday. "It seems likely that Ford
will need to de-lever its balance sheet by pursuing additional
equity and/or debt exchanges."

The company also may face a significant payment in 2011
when its $10 billion credit facility matures, he said.

A spokesperson for Ford declined comment.

Alan Mulally, Chief Executive at the automaker, said last
week that the company plans to further reduce debt, but didn't
give specifics. The automaker has a sound balance sheet and
expects to return to profitability in 2011, he added.

Ford in April reduced its debt by around $10 billion by
repurchasing bonds and loans at significant discounts to their
par value and exchanging convertible debt for stock.

The company also raised $1.4 billion in an equity offering
in May.

As the company taps government loans and continues to burn
through cash its gross debt levels are likely to increase to
around 4 times its EBITDA and "auto companies should not be
levered more than 2 times," JPMorgan equity analysts said in a
report sent on Wednesday.

By comparison, the new General Motors will have 1.5 times
gross debt to EBITDA, they said.

Ford has benefited from issuing equity and reducing debt at
opportune times in the markets and is likely to make further
restructurings that could include a debt exchange or stock sale
as markets permit, said Shelly Lombard, analyst at credit
research firm Gimme Credit.

"Mulally has proven to be very savvy about Ford's balance
sheet," she said. "He knows the time to get the money is when
the market is offering it, not necessarily when you need it
because if you wait until you need it you may not be able to
get it."

Ford's debt prices have risen since the tender offer in
April, which leaves them with less ability to gain from buying
back its debt at discount levels, said CRT's Ludtke.

"As a consequence, we believe that Ford could turn to a
coercive debt exchange in order to de-lever the company," he
said.

Ford's 7.45 percent bonds due 2031, for example, have risen
to 55 cents on the dollar, from 19.7 cents in early March
before the company launched its tender offer, according to
MarketAxess.
(Editing by James Dalgleish)