DETROIT, March 30 (UPI) -- The already significant financial woes of Detroit's General Motors Corp. have worsened with another credit rating cut.
Moody's Investors Service downgraded GM's debt, already deep in junk territory, to B3, some six notches below investment grade, the Wall Street Journal reported Thursday. Standard & Poor's, meanwhile, put GM on "credit watch with negative implications."
The moves arose from concerns the automaker's access to a $5.6 billion revolving credit facility could be in jeopardy and a GM disclosure that lease obligations of as much as $3 billion "could be subject to possible claims of acceleration, termination, or other remedies."
"There is substantial uncertainty as to whether the bank syndicate would be required to honor a request (under the credit facility), and therefore there is a high risk that GM would not be able to borrow under this facility," the carmaker said.
The cascading cash-flow problems come on top of the possibility that unionized workers will strike at supplier Delphi Corp. Friday, triggering a shutdown of the world's largest automaker.
