Blow for Us Carmaking Giants As Sp Labels Bonds Junk

Evening Standard - London › May 06, 2005

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Summary

AMERICA'S embattled carmakers face an even more difficult task of rebuilding their businesses after credit rating agency Standard Poor's cut its ratings on about $290 billion (Pounds 151.8 billion) of General Motors and Ford bonds to junk status, writes Bill Condie.

The move to downgrade the debt to non-investment grade also sent shock waves through the junk bond market as it headed for a flood of new paper. Prices there slumped as investors braced for the market to grow by as much as 15%.

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Extract

Blow for Us Carmaking Giants As Sp Labels Bonds Junk

GM and Ford said they were disappointed by t...

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