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
In 20 Years, I Haven’t Seen A Cash Back Card This Good
After two decades of reviewing financial products I haven’t seen anything like this. Credit card companies are at war, handing out free rewards and benefits to win the best customers.
A good cash back card can be worth thousands of dollars a year in free money, not to mention other perks like travel, insurance, and access to fancy lounges.
Our top pick today pays up to 5% cash back, a $200 bonus on top, and $0 annual fee. Click here to apply before they stop offering rewards this generous.
Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.