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
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