Moody’s Cuts Rating on GM
- Share via
DETROIT — Moody’s Investors Service Inc. lowered its rating Tuesday on General Motors Corp. debt, a move that could raise its borrowing costs and hamper the ability of its financing arm to borrow for short periods.
Moody’s, a New York-based debt rating agency, said it downgraded GM; the financing arm, General Motors Acceptance Corp., and GM Hughes Electronics.
“The rating downgrades reflect GM’s weakening competitive position in the North American auto market,” Moody’s said in a statement.
The agency said it expects GM will need several years to realize the benefits of cost-cutting moves it is making now.
“Consequently, Moody’s believes that GM’s core North American auto operations are likely to remain a cash user during the intermediate term,” the statement said.
GM lost about $12 billion in North America in 1990-1991 and is expected by some analysts to lose $3 billion to $4 billion this year.
GM’s stock added 12.5 cents to $31.125 on the New York Stock Exchange.
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
