Moody’s Cuts GM Rating One Level
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General Motors Corp. had its long-term credit rating cut one level to “A3” from “A2” by Moody’s Investors Service, the second ratings company in eight days to lower the rating for the world’s biggest auto maker.
The downgrade follows a spate of bad news from auto companies. Standard & Poor’s cut GM’s credit rating two levels last week, to “BBB+” from “A.”
Ford Motor Co., the No. 2 auto maker, also had its credit ratings cut, and Ford, GM and No. 5 auto maker DaimlerChrysler all reported third-quarter losses because of increased competition and slow sales.
GM’s short-term debt rating was lowered to “Prime-2” from “Prime-1,” which will limit the car company’s ability to borrow in the commercial paper market and could raise borrowing costs.
GM shares rose 58 cents to close at $43.15 on the NYSE.
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