Standard & Poor’s Ratings Services has lowered Delphi Corp.’s credit rating further into “junk” status, citing weak earnings and production cuts at Delphi’s former parent General Motors, the Associated Press (AP) reported.
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The report said Delphi’s rating was lowered from BB to B- and noted he change could make it more difficult for the struggling supplier to borrow money – S&P last lowered Delphi’s credit rating on April 21.
S&P reportedly said the downgrade also reflects Delphi’s high, inflexible costs, including its health care and pension burdens.
The Associated Press added that Delphi began meeting with banks last Monday to discuss its plan to obtain between $US2.5 billion and $3 billion in loans – S&P reportedly said the rating assumes Delphi will secure $2.75 billion in financing.
Delphi loses $409 million in Q1
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