GM Credit Rating Cut One Level to 'A3' by Moody's

General Motors Corp. had its long-term credit rating cut one level to "A3" from "A2" by Moody's Investors Service, the second ratings

company in eight days to lower the rating for the world's biggest automaker.

The downgrade follows a spate of bad news from auto companies. Standard & Poor's cut GM's credit rating two levels last week, to "BBB+" from "A." Ford Motor Co., the No. 2 automaker, also had its credit ratings cut, and Ford,

GM, and No. 5 automaker DaimlerChrysler AG all reported third-quarter losses because of increased competition and slow sales.

GM's short-term debt rating was lowered to "Prime-2" from "Prime-1," which will limit the car company's ability to borrow in the commercial paper market and could raise borrowing costs, according to industry analysts.