All kinds of Junk

by **frankthetank** » Thu 05 May 2005, 15:28:58

http://www.msnbc.msn.com/id/3683270/ SO now what?

and here Marketwatch

Standard & Poor's, in a double whammy for the auto sector, slashed General Motors Corp. and Ford Motor Co. debt ratings to "junk" status Thursday, citing a combination of flagging product lines, crushing overheads and intense competition from abroad

by **SD_Scott** » Thu 05 May 2005, 15:31:52

You beat me to it. I did read in another article that the rating is BB which was reported to be the second highest form of junk. :lol:

by **frankthetank** » Thu 05 May 2005, 15:36:00

"Industrywide demand for SUVs has evidently stalled, partly because of persistent high gasoline prices. In addition, competition has intensified due to a proliferation of new SUVs," S&P said.

I wonder how much more they'll pay in borrowing costs?

by **RonMN** » Thu 05 May 2005, 15:36:52

Maybe wallmart will be selling cars soon

by **mgibbons19** » Thu 05 May 2005, 15:45:31

Oh god don't even joke.

by **BiGG** » Thu 05 May 2005, 15:53:25

$this->bbcode_second_pass_quote('RonMN', 'M')aybe wallmart will be selling cars soon

by **bobbyald** » Thu 05 May 2005, 16:08:22

$this->bbcode_second_pass_quote('', 'I')ndustrywide demand for SUVs has evidently stalled, partly because of persistent high gasoline prices.

by **BitterSweetCrude** » Thu 05 May 2005, 16:40:14

I see, so they finally lowered GMs credit to match the quality of their cars. JUNK.

by **NevadaGhosts** » Thu 05 May 2005, 17:06:51

$this->bbcode_second_pass_quote('BitterSweetCrude', 'I') see, so they finally lowered GMs credit to match the quality of their cars. JUNK.

by **BiGG** » Thu 05 May 2005, 17:12:57

$this->bbcode_second_pass_quote('NevadaGhosts', '')$this->bbcode_second_pass_quote('BitterSweetCrude', 'I') see, so they finally lowered GMs credit to match the quality of their cars. JUNK.

by **smiley** » Thu 05 May 2005, 18:15:09

$this->bbcode_second_pass_quote('', 'Y')ou guys gotta quit buying rusty old Vega’s and get yourself a 320 HP Cadillac STS or the lovely new 345 HP H.O. Silverado SS, you don't get new as many tickets as you do driving a Corvette and almost as much fun!

by **NevadaGhosts** » Thu 05 May 2005, 18:16:56

$this->bbcode_second_pass_quote('smiley', '')$this->bbcode_second_pass_quote('', 'Y')ou guys gotta quit buying rusty old Vega’s and get yourself a 320 HP Cadillac STS or the lovely new 345 HP H.O. Silverado SS, you don't get new as many tickets as you do driving a Corvette and almost as much fun!

by **RonMN** » Thu 05 May 2005, 20:11:16

I see the pic of the "buggy"...but Wallmart doesn't really sell cars (yet) do they?

by **BiGG** » Thu 05 May 2005, 20:46:45

$this->bbcode_second_pass_quote('RonMN', 'I') see the pic of the "buggy"...but Wallmart doesn't really sell cars (yet) do they?

by **Mark_i** » Fri 06 May 2005, 04:02:07

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.

http://www.marketwatch.com/news/newsfin ... =&categori

by **killJOY** » Fri 06 May 2005, 06:29:43

http://tinyurl.com/create.php?url=about:blank

by **jimmydean** » Fri 06 May 2005, 11:44:21

No wonder ... 300B in the debt and only 18B (GM) 18B(GMAC) in cash running deficits in healthcare costs.

At 16B market cap one wonders how in the heck GM will ever payback that debt. Bailout from Washington not likely. GM could be going bankrupt in 5 years unless there is massive cost cutting and improvements to products to jumpstart sales.

by **Trab** » Fri 06 May 2005, 12:07:54

I wouldn't be surprised if this gives GM the ability to dump their pension obligations off on the US Government, and then allow them to go after the unions for concessions.

This is a clear case of the trendy adagae around here concerning debt...

"If you owe the bank $1,000,000, you've got a big problem.
If you owe the bank $100,000,000, the bank's got a big problem."

GM's too big to be allowed to go down, so some form of bailout will likely take place if necessary...

by **nero** » Fri 06 May 2005, 13:16:31

$this->bbcode_second_pass_quote('', '"')If you owe the bank $1,000,000, you've got a big problem.
If you owe the bank $100,000,000, the bank's got a big problem."

by **jimmydean** » Fri 06 May 2005, 16:47:09

Probably most of GM's corporate bonds are held by investors so they will take the brunt of the hit.

It's quite funny that Cramer (the day before the Moody's hit) was laughing at the hedge funds for shorting GM and put a bull indicator on GM after Krevokian (whatever his name is) intended to buy the 28M shares.

The outstanding debt makes me wonder what the hell Krevokian is thinking. He must be bullish on the idea of dividing/selling most of the assets, keeping a minute production line and focussing on the finance part of GM?

hmmm

All kinds of Junk

All kinds of Junk

GM rating downgraded to Junk level

Who is online