05 May 2005 16:56 GMT MARKET TALK: S&P Cuts Credit Ratings On GM, Ford 12:55 (Dow Jones) It's official: S&P has downgraded GM and GMAC to junk. The two-notch downgrade brings GM and GMAC and all related entities ratings to BB/B-1 from BBB-/A-3 and kept a negative outlook. "The downgrade to non-investment-grade reflects our conclusion that management's strategies may be ineffective in addressing GM's competitive disadvantages. Still, GM should not have any difficulty accommodating near-term." GM's bonds due 2033 fall 5 points in response. S&P also cuts Ford (F) one-notch with a negative outlook. "The downgrade to non-investment-grade reflects our skepticism about whether management's strategies will be sufficient to counteract mounting competitive challenges." S&P's long- and short-term corporate credit ratings on Ford Motor Co., Ford Motor Credit Co., and all related entities - except those of Hertz Corp.- now stand at 'BB+/B-1' from 'BBB-/A-3'. (GMM)
Still holding GM short. Gain back a little of the losses from yesterday gap on K's buy of 9% stake... Hope the thing tanks...
I don't follow GM but received some shares as part of my Dad's estate. He worked for them. Any guesses on the odds of GM getting concessions on retiree benefits, especially health care? How about the odds of a spinoff of GMAC? DS
well - how about an army of GM lobbyists and lawyers trying to fend off a downgrade? I'm sure GM fought tooth and nail to hold off reality.
".... Psssst.. .Mr Kerkorian... Pssst.... you wanna make a couple million in about a day?" " Um.... sure, what exactly do I have to do...." "well, ya see it's like this..........." ------------------ And so goes yet another scam performed by "those in the know" to collect free $$$-as the rich get richer- which will as usual go undetected by general market lemmings. coincidence you say? Me thinks not.
kirk has dozens and dozens of outs if/when he chooses to back out of the deal. meanwhile he held the stock up artificially for the benefit of someone....i smell a rat.
Reminds me of the proposed takeover of Federal Mogul a few years ago. Rumors, innuendos, unconfirmed information pushed the price up, followed soon after by a precipitous drop in the price of the stock.