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Politics : Stockman Scott's Political Debate Porch

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To: Jim Willie CB who wrote (1837)	7/11/2002 12:29:11 PM
From: stockman_scott	Read Replies (1) of 89467

RESEARCH ALERT-UBS cuts GM, citing pension liability NEW YORK, July 11 (Reuters) - UBS Warburg said on Thursday that it was cutting its rating on General Motors Corp. <GM.N> from "buy" to "hold" because of risks stemming from its large U.S. pension liabilities. "We are confident the story on the operational side remains strong," UBS Warburg analyst Saul Rubin said of the world's largest automaker in a research note. "But balance sheet weakeness resulting from U.S. pension liability is impossible to ignore and now presents a risk large enough to merit a rating change," he said. The move followed a similar downgrade on Wednesday by Banc of America, which pushed GM's shares down $3.53 or 6.9 percent in trading on the New York Stock Exchange to $47.61. In the past few weeks, various analysts have raised questions about the billions of dollars in pension and health-care liabilities facing Detroit's Big Three automakers, especially at GM. All three rely on stock market investments to fund retirement benefits, but analysts say the recent market selloff has cast a mushrooming shadow of doubt over automakers' assumptions about investment returns. 07/11/02 12:00 ET

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