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Ratings Agencies Downgrade GM, Ford

December 23, 2008

Standard & Poor's Ratings Services on Monday cut the unsecured debt of General Motors Corp. to C from CC, saying that debt holders could see a "significant decrease" in value in the event of a bankruptcy.

At the same time, Moody's Investors Service cut Ford Motor Co.'s rating to Caa3 from Caa1, explaining that the company may have to restructure its balance sheet to reach the same union concessions that GM and Chrysler are likely to achieve in the wake of the federal bailout loans.

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