International credit-rating agency Fitch Ratings has cut its credit rating for General Motors Corp. to junk bond or non-investment-grade status, according to Kyodo News.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Fitch reportedly lowered the long-term senior unsecured debt ratings on GM and its finance arm General Motors Acceptance Corp. by one level to BB-plus from BBB-minus, saying: ”The action reflects the continuing decline in GM’s North American sales of key mid-size and large SUV products, increasing product and price competition in the large pickup market, and the corresponding impact of these two segments on consolidated profitability.”
Its ratings outlook for GM remains negative, Kyodo added.
The report said the downgrade, which prompted prices for GM stocks and bonds to plunge, followed similar ratings action earlier this month by Standard & Poor’s.
