GM downgrade to junk ‘a few quarters away’
There is a sense of inevitability about GM’s prospects as more bad news emerges
Detroit-based General Motors slid further down the slippery slope to junk in March as the beleaguered automaker announced dramatically lower earnings and cashflow guidance only six weeks after its initial forecast. Automotive operating cashflow was forecast at a loss of $2 billion, against a previous $2 billion target—a massive $4 billion downward adjustment and a shortfall of such magnitude that much of the market was taken by surprise.
The rating agencies reacted quickly to the announcement
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