Printer Friendly
The Free Library
22,710,190 articles and books

Fitch downgrades GM credit rating to junk status.



NEW YORK New York, state, United States
New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of
, May 24 Kyodo

International credit-rating agency Fitch Ratings Fitch Ratings

An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris.
 cut the credit rating for General Motors Corp. on Tuesday to junk bond junk bond, a bond that involves greater than usual risk as an investment and pays a relatively high rate of interest, typically issued by a company lacking an established earnings history or having a questionable credit history.  or non-investment-grade status, in what heralds financial difficulties for the world's largest carmaker.

Fitch lowered the long-term senior unsecured debt ratings on GM and its finance arm General Motors Acceptance Corp. by one level to BB-plus from BBB-minus.

''The action reflects the continuing decline in GM's North American sales of key mid-size and large SUV products, increasing product and price competition in the large pickup market, and the corresponding impact of these two segments on consolidated profitability,'' Fitch said.

Its ratings outlook for GM remains negative.

The downgrade, which prompted prices for GM stocks and bonds to plunge, followed similar ratings action earlier this month by Standard & Poor's.

S&P cut its debt ratings for GM and Ford Motor Co. on May 5 to junk bond status, citing their gloomy business prospects. The U.S. ratings agency also said GM's consolidated debt outstanding totaled

$291.8 billion at the end of March.

With those ratings, GM will likely have to pay more to borrow and see its financial situation further deteriorate.
COPYRIGHT 2005 Kyodo News International, Inc.
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2005 Gale, Cengage Learning. All rights reserved.

 Reader Opinion

Title:

Comment:



 

Article Details
Printer friendly Cite/link Email Feedback
Publication:Japan Weekly Monitor
Geographic Code:1USA
Date:May 31, 2005
Words:194
Previous Article:Kyodo economic news summary.
Next Article:Tokyo Stock Exchange: morning price list -1-.
Topics:



Related Articles
S&P downgrades GM, Ford due to concerns about business prospects.
BRIEFCASE.
Fitch downgrades Ford ratings to junk status.
Moody's, S&P lower GM ratings further.

Terms of use | Copyright © 2014 Farlex, Inc. | Feedback | For webmasters