Chrysler Debt Rating Downgraded: Moody’s Investors Service...
From Times Staff and Wire Reports
Chrysler Debt Rating Downgraded: Moody’s Investors Service said it downgraded debt of Chrysler Corp. and its Chrysler Financial Corp. unit in the second such move against the auto maker this month. The move, which could make it more expensive for Chrysler to raise money, affects about $22.28 billion of securities. Moody’s said the downgrade reflects its assessment of the No. 3 car maker’s ability to repay its debts during a period of weak earnings. It noted that Chrysler has committed itself to large capital expenditures as well as high research and development costs in the near future. Moody’s move followed a similar step two weeks ago by Standard & Poor’s Corp.
