Moody’s Lowers Ratings on GM Debt
From Reuters
Moody’s Investors Service cut the debt ratings of General Motors Corp. and warned that it may cut them again, citing heightened, profit-corroding competition in the U.S. auto market and GM’s multibillion-dollar pension and health-care liabilities.
Moody’s cut the ratings on both the parent company and its financing unit, General Motors Acceptance Corp. The negative outlook signals that the debt ratings could be downgraded further.
Moody’s cut GM’s long-term credit ratings by one notch to Baa1. The company cut GMAC’s long-term rating to A3 and its short-term rating to Prime-2. It backed GM’s existing Prime-2 short-term rating.
