Path: bloom-picayune.mit.edu!enterpoop.mit.edu!snorkelwacker.mit.edu!americast.com!americast.com!americast-post Newsgroups: americast.latimes.money From: americast-post@AmeriCast.Com Organization: American Cybercasting Approved: americast-post@AmeriCast.com Subject: Moody's Cuts Rating on GM Date: Thu, 26 Nov 92 11:27:52 EST Message-ID: Lines: 32 HEADLINE: Moody's Cuts Rating on GM Publication Date: Wednesday November 25, 1992 BYLINE: Moody's Investors Service Inc. lowered its rating Tuesday on General Motors Corp. debt, a move that could raise its borrowing costs and hamper the ability of its financing arm to borrow for short periods. Moody's, a New York-based debt rating agency, said it downgraded GM; the financing arm, General Motors Acceptance Corp., and GM Hughes Electronics. "The rating downgrades reflect GM's weakening competitive position in the North American auto market," Moody's said in a statement. The agency said it expects GM will need several years to realize the benefits of cost-cutting moves it is making now. "Consequently, Moody's believes that GM's core North American auto operations are likely to remain a cash user during the intermediate term," the statement said. GM lost about $12 billion in North America in 1990-1991 and is expected by some analysts to lose $3 billion to $4 billion this year. GM's stock added 12.5 cents to $31.125 on the New York Stock Exchange. This article is copyright 1992 The Los Angeles Times Home Edition. Redistribution to other sites is not permitted except by arrangement with American Cybercasting Corporation. For more information, send-email to usa@AmeriCast.COM