Standard & Poor's today lowered the rating on General Motors Corp. and GMAC to BB with a negative outlook, and cut the rating on Ford Motor Co. and Ford Credit to BB+ with a negative outlook, Scott Sprinzen, S&P credit analyst, said in a conference call. Both are junk ratings.
Since the ratings agency last downgraded GM in October, when it also affirmed Ford's ratings, concerns about the companies and their credit quality "have been growing," Mr. Sprinzen said. He noted "no one should have been taken by surprise."
"Pricing competition has remained fierce," Mr. Sprinzen said, noting "against that backdrop, though, these companies have fared poorly."
"We wouldn't expect that there would be funding problems in the coming weeks and months, but ultimately no one knows," Mr. Sprinzen said. "We're in uncharted waters as far as that's concerned," he added.
