Response to ALLDERBLOB grows: Moody’s lowers GM, possibly Ford, closer to “Junk”

Following up on the scandal that threatens to bring down the whole house of cards (all good trends start in California, as ALLDERBLOB readers well know), Moody’s, the dark and tempestuous star of the financial profiling world, has reclassified its assessment of GM’s debt rating, (reports the LA Times).

“With Moody’s move, GM is rated just one step above junk, with a negative outlook, by all three major credit rating firms.

“A downgrade below investment grade by even one rating service could boost GM’s borrowing costs and wreak havoc in the corporate bond market, some analysts say. Many big investors, such as pension funds, aren’t permitted to own junk securities and would have to jettison GM’s bonds.”

The report also says Ford Motor Co.’s debt rating is under review. If you go to the page, note the ads: we got Mercedes Benz (twice) and two ads for used cars. That’s all.

Meanwhile, what has the Toronto Star’s “Wheels” section got on offer today? Hmm. We will return to this story.

One Response to “Response to ALLDERBLOB grows: Moody’s lowers GM, possibly Ford, closer to “Junk””

  1.  

    A follow-up to the above comment: "we will return to this story."

    I searched the Star's Wheels section (kind of light this week, just one section for a change) for mention of the damage at GM or Ford.

    Nothing there though.

Leave a Reply

You must be logged in to post a comment.