S&P knocks GM debt deeper into junk

AFX reports:

Standard & Poor's pushed General Motors' credit rating deeper into junk status Monday, raising concerns the Detroit giant might face bankruptcy if it doesn't mend its ailing North American auto operations.

The ratings agency downgraded GM's $285 billion in debt to B from BB-, with a negative outlook.

"If recent trends persist, GM could ultimately need to restructure its obligations (including its debt and contractual obligations), despite its currently substantial liquidity and management's statements that it has no intention of filing for bankruptcy," S&P analysts said.

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