Jesus, this thing's becoming a roller-coaster. While everyone was jubilating over Kerorkian's investment in GM stock, Standard & Poor's gave 'em a crowbar across the knees by downgrading their debt status to junk. GM is now the biggest company in the history of the world to suffer that fate, WorldCom being the previous champ of that dubious league. To put it in perspective, GM's debt in notes, bonds and asset-backed securities is around $300 billion. WorldCom's was only $30 billion. Meanwhile, we hear from a source in the market that Ford has been downgraded as well. Not a great day for the American auto industry. We have a feeling the tequila will be flowing heavily in Motown tonight.
-Davey G. Johnson
General Motors Debt Rating Cut to Junk by Standard & Poor's [Bloomberg]
Related:
Bullish or Bearish on Kerorkian? [Internal]