Wall RSS FeedGM, Ford, Chrysler Credit Ratings May Be Cut by S&P (Update3)
By Caroline Salas
June 20 (Bloomberg) — General Motors Corp., Ford Motor Co. and Chrysler LLC credit ratings may be lowered by Standard & Poor’s as higher gas prices inflict “financial damage” on the auto industry.
S&P placed the carmakers’ credit ratings, already five levels below investment grade, on CreditWatch negative, according to a statement today. New York-based S&P, a unit of McGraw-Hill Cos., said it may also downgrade their financing arms. While the carmakers will be able to pay their debts this year, their cash may shrink to “undesirable levels” by the end of 2009, S&P said.
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