The financial outlook for domestic auto manufacturer General Motors
Corp. has gone from bad to worse.
On Tuesday, Feb. 21, Moody’s Investors Service, one of the two major
stock-evaluating agencies, dropped GM’s $30 billion in debt to B2 status.
That’s five steps below investment grade, and six above the worst possible
GM has seen its share of bad news in the markets during the past few
months. In December 2005, Standard & Poor’s Ratings Services gave the
company a B rating with a negative outlook.
The ratings have raised new questions about whether the former
manufacturing juggernaut would have to file for bankruptcy protection, or sell
off more of its assets to stay afloat. However, officials with GM said that
future is not in the cards.
“I’d just like to set the record straight here and now: There is
absolutely no plan, strategy or intention for GM to file for bankruptcy,” GM
CEO Rick Wagoner said in a letter to company employees.