S&P cuts GM bonds to "junk" rating.
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S&P cuts GM bonds to "junk" rating.
In other news Toyota buys 10 shipping crates of sake and dixie cups.
http://www.marketwatch.com/news/story.asp?guid={C3D6403C-4546-4050-ABD5-2AEC0A628B1D}&siteid=mktw&dist=
http://www.marketwatch.com/news/story.asp?guid={C3D6403C-4546-4050-ABD5-2AEC0A628B1D}&siteid=mktw&dist=
SAN FRANCISCO (MarketWatch) - Ratings concern Standard & Poor's, in a widely expected move, cut its credit rating on General Motors Corp. to "junk" status Thursday, a day after the automaker's shares turned in a historic rally.
In afternoon trade, GM's stock (GM: news, chart, profile) was down 5.5% to $31.01 after jumping 18% Wednesday in reaction to Kirk Kerkorian's bid to double his stake in GM.
"The downgrade to non-investment-grade reflects our conclusion that management's strategies may be ineffective in addressing GM's competitive disadvantages," S&P said in a note.
In afternoon trade, GM's stock (GM: news, chart, profile) was down 5.5% to $31.01 after jumping 18% Wednesday in reaction to Kirk Kerkorian's bid to double his stake in GM.
"The downgrade to non-investment-grade reflects our conclusion that management's strategies may be ineffective in addressing GM's competitive disadvantages," S&P said in a note.
Last edited by Salty; May 5, 2005 at 02:16 PM.
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SAN FRANCISCO (MarketWatch)-- Standard & Poor's Ratings Services on Thursday cut its long- and short-term corporate credit ratings on General Motors Corp. (GM) , General Motors Acceptance Corp., and all related entities by two notches to "BB/B-1," or junk status, from "BBB-/A-3". The rating outlook is negative. S&P said the move reflects its conclusion that management's strategies may be ineffective in addressing GM's competitive disadvantages, though it notes that GM shouldn't have any difficulty accommodating its near-term cash requirements. The bid by Kirk Kerkorian's Tracinda Corp. to increase its ownership stake in GM represents an additional uncertainty, S&P said, but said this was not a factor at all in the current rating action.
SAN FRANCISCO (MarketWatch)-- Standard & Poor's Ratings Services on Thursday cut its long- and short-term corporate credit ratings on General Motors Corp. (GM) , General Motors Acceptance Corp., and all related entities by two notches to "BB/B-1," or junk status, from "BBB-/A-3". The rating outlook is negative. S&P said the move reflects its conclusion that management's strategies may be ineffective in addressing GM's competitive disadvantages, though it notes that GM shouldn't have any difficulty accommodating its near-term cash requirements. The bid by Kirk Kerkorian's Tracinda Corp. to increase its ownership stake in GM represents an additional uncertainty, S&P said, but said this was not a factor at all in the current rating action.
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