S&P places GM's and GMAC's ratings on CreditWatch Negative
The following is a summary of a UBS full-length report on this topic, dated
October 4, 2005.
* S&P places GM's and GMAC's ratings on CreditWatch Negative:
S&P placed GM's and GMAC's BB ratings on CreditWatch with negative
implications due to concerns concerns about rising energy costs,
deteriorating mix and sales volume, pricing pressures, declining SUV
sales, as well as GM's exposure to the problems of its weak supplier,
Delphi.
* We maintain Underperform on GM:
We maintain an Underperform on GM, a 'BB' rating, and a
'Deteriorating' Credit Trend.
* Risk Tolerance is Key:
Investors should consider whether GM/GMAC bonds are appropriate
investments in light of their risk tolerance profile.
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