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Moody’s Lowers Debt Ratings for Ford, GM

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From Associated Press

Moody’s Investors Service became the latest credit-rating company to slash debt of both General Motors Corp. and Ford Motor Co. to “junk” status, a move that will further increase borrowing costs for the automakers.

The New York-based rating company cut General Motor’s debt to below investment grade because of its continued operating losses in North America and challenges to restructuring efforts. It also lowered General Motors Acceptance Corp. -- the auto giant’s financing arm -- to junk status. The agency cut GM’s senior unsecured debt rating to Ba2 from Baa3, and GMAC’s senior unsecured rating to Ba1 from Baa2.

Moody’s lowered Ford Motor’s senior unsecured debt to Ba1 from Baa3 and its senior unsecured rating to Baa3 from Baa2. Ford has about $150 billion of outstanding debt, according to Moody’s.

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