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Fitch Ratings
Fitch Downgrades General Motors' IDR to 'C'
January 10th, 2009
Fitch Ratings has downgraded the Issuer Default Rating (IDR) of General Motors Corporation to 'C', indicating that default is imminent. The rating action reflects the terms of federal government assistance that were announced, which include a reduction in the company's current debt load. Debt reduction is expected to take the form of a distressed debt exchange, which is a default under Fitch's methodology, although how the exchange is to be accomplished remains highly uncertain. The ability of GM to use equity to address debt and VEBA obligations is very limited given the size of the obligations and GM's current market capitalization. The threat of a bankruptcy remains,...
Source: Law & Health Weekly (2009-01-10)
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