NEW YORK — Standard & Poor’s Ratings Services on Thursday cut its credit ratings for all three U.S.-based automakers further into junk status, citing worries about their mounting cash losses and the continued deterioration of the U.S. auto market.
S&P lowered its ratings for General Motors Corp., Ford Motor Co. and Chrysler LLC all to “B-” from “B.” It also lowered its ratings on the trio’s respective financing arms — GMAC LLC, Ford Motor Credit Co. and DaimlerChrysler Financial Services Americas LLC — to “B-” from “B.”
In addition, the ratings service cut its corporate credit rating on FCE Bank PLC, Ford Credit’s European bank, to “B” from “B+.”
S&P credit analyst Robert Schulz said the steep drop in new-vehicle sales and the ongoing shift in consumer preferences toward smaller, more fuel-efficient vehicles are going to make it harder for the automakers to restructure themselves and will force them to burn through their cash reserves.
