Nonprime, Perhaps? Detroit's Big 3 Face Credit Woes
Detroit's automakers all are at risk of having to pay higher interest rates on the money they borrow, while many of their suppliers already
are, according to professionals at a prominent agency that rates companies' creditworthiness.
The Detroit News reports that increasing competition -- especially among pickups and sport-utility vehicles -- is cutting prices in the highly profitable segment, and that hurts automakers' ability to repay debt.
"Demand remains robust, but pricing is deteriorating," said Scott Sprinzen, head auto industry analyst for Standard & Poor's.
General Motors Corp., Ford Motor Co., and DaimlerChrysler AG have specific challenges in order to maintain good credit ratings for the next couple of years, according to the News.
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