General Motors, Ford Debt Ratings Cut to Junk by S&P

General Motors Corp. and Ford Motor Co., the two biggest U.S. automakers, had their credit ratings reduced to junk-bond status, slashing the value of a combined $375 billion in debt and causing their shares and bonds to drop.

S&P cut GM two levels to BB from BBB-. Ford was lowered one level to BB+ from BBB-. The downgrades “reflects our conclusion that management’s strategies may be ineffective in addressing” their “competitive disadvantages,” S&P analyst Scott Sprinzen said in a report today.
Bloomberg