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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: ild who wrote (45182)	11/9/2005 1:19:00 PM
From: ild	Read Replies (1) \| Respond to of 110194

Fitch downgrades GM ratings to 'B+' from 'BB' (GM) By Carla Mozee SAN FRANCISCO (MarketWatch) -- Fitch Ratings on Wednesday downgraded the issuer default rating and senior unsecured debt of General Motors Corp. (GM) to B+ from BB, and placed the ratings on rating watch negative pending developments of the financial and operating situation at its biggest parts supplier, Delphi Corp. (DPHIQ) . The ratings of General Motors Acceptance Corp., and Residential Capital Corp. remain on rating watch evolving. Fitch said the downgrade primarily reflects concerns over further financial support and/or costs that GM may incur in order to ensure that Delphi is able to reach an agreement with the United Auto Workers. Fitch also expects that negative cash flow through at least 2006 could be exacerbated by potential non-operating items that would reduce GM's liquidity position and flexibility in undertaking any major restructuring program. A labor disruption at Delphi for any extended period would have an immediate impact on the automaker's ability to operate and would quickly reduce liquidity, said Fitch.