Moody’s Investors Service cut its ratings on the unsecured debt of Ford and General Motors to junk status on Wednesday, following earlier downgrades by other rating agencies and removing any remaining doubt about the two carmakers’ fate.
In both cases, Moody’s highlighted concerns about deteriorating operating performance and the carmakers’ uncompetitive cost structures. The move left Ford’s finance unit clinging to a Baa3 investment grade rating, but the carmaker’s parent company was downgraded to Ba1, Moody’s highest non-investment grade mark.
