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Bank bailouts at a theater near you.
Big Three bailout coming summer 2009?
L.
Chrysler's credit rating downgraded
Fitch cuts the automaker's credit rating two notches to deeper junk, saying tighter financing likely to curtail sales.
July 29, 2008: 2:40 PM EDT
NEW YORK (AP) -- Fitch Ratings cut Chrysler LLC's credit rating further into junk territory on Tuesday, saying restricted access to financing for its vehicles will result in lower retail volumes.
The credit ratings agency lowered Chrysler's issuer default rating two notches to "CCC" from "B-". It said the company's restricted access to economic retail financing for its vehicles is likely to lead to a further slowdown in its retail sales and more costly sales incentives.
Fitch also said it is concerned with the state of the securitization market and the ability of automakers to access that market given the sharp drop in residual values of their vehicles, among other factors.
Chrysler's liquidity will likely be "adequate" for the next 12 months, Fitch predicted, but the rapid decline in auto sales and higher commodity prices will result in cash burn at least through 2009.
Fitch assigned an outlook of "Negative," meaning a further downgrade is likely in the near future.
The ratings agency also downgraded Chrysler's senior secured first-lien bank loan to "B" from "BB-" and its senior secured second-lien bank loan to "CC" from "CCC." Both ratings remain non-investment grade.
Original article link:
http://money.cnn.com/2008/07/29/news...ion=2008072914
Big Three bailout coming summer 2009?
L.
Chrysler's credit rating downgraded
Fitch cuts the automaker's credit rating two notches to deeper junk, saying tighter financing likely to curtail sales.
July 29, 2008: 2:40 PM EDT
NEW YORK (AP) -- Fitch Ratings cut Chrysler LLC's credit rating further into junk territory on Tuesday, saying restricted access to financing for its vehicles will result in lower retail volumes.
The credit ratings agency lowered Chrysler's issuer default rating two notches to "CCC" from "B-". It said the company's restricted access to economic retail financing for its vehicles is likely to lead to a further slowdown in its retail sales and more costly sales incentives.
Fitch also said it is concerned with the state of the securitization market and the ability of automakers to access that market given the sharp drop in residual values of their vehicles, among other factors.
Chrysler's liquidity will likely be "adequate" for the next 12 months, Fitch predicted, but the rapid decline in auto sales and higher commodity prices will result in cash burn at least through 2009.
Fitch assigned an outlook of "Negative," meaning a further downgrade is likely in the near future.
The ratings agency also downgraded Chrysler's senior secured first-lien bank loan to "B" from "BB-" and its senior secured second-lien bank loan to "CC" from "CCC." Both ratings remain non-investment grade.
Original article link:
http://money.cnn.com/2008/07/29/news...ion=2008072914