Thursday, May 05, 2005

S&P CUTS GENERAL MOTORS' AND FORD's CREDIT RATINGS TO JUNK

Combined with a Fed prime rate increase, GM & Ford received a double-whammy when their credit ratings were cut to junk status. Higher cost of borrowing reduces the operating margin on sales, and it makes their captive credit arms less competitive.

S&P cuts GM, Ford credit ratings to ?junk? - Stocks & Economy - MSNBC.com
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