S&P does not appear to be willing to bet that the new administration will want to or be able to bail out GM (GM), Ford (F), and Chrysler.
If the credit rating agency is right, the chances are growing that one or more of the companies will default on its debt.
According to AP, "S&P said its rating on General Motors Corp., Ford Motor Co. and Chrysler LLC is now "CCC+," well into non-investment grade territory and four notches away from a "D," or default, rating. All three automakers have negative outlooks, meaning another downgrade in the near future is likely."
The firm warned that the chance that one of the three companies will stiff its lenders over the next year is increasing.
Douglas A. McIntyre
Essential Tips for Investing (Sponsored)
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
