Wednesday, May 25, 2005

Fitch Downgrades GM Bonds To Junk Status

Just a brief mention: Green Car Congress reports Fitch Ratings has downgraded GM bonds to junk. The downgrade has cause commercial holders of such bonds required to carry "investment grade-only" paper to dump them.
``This is the tip of the iceberg with GM,'' said Shelly Lombard, an analyst at New York-based debt research firm Gimme Credit. ``They have issues over the next couple of years and they've not even started addressing their problems yet.''
It may not matter much, though, because the earlier downgrade by Standard & Poor's pretty much had everyone scurrying for the exits already.