The Credit Overhang: A Protracted European Recession Could Hurt Some U.S. Auto Sector Ratings Aug 12
- Language: English
- Published: August 2012
- Region: Europe, United States
NEW YORK (Standard & Poor's) June 17, 2011--Despite risks associated with the fragile U.S. economic recovery, the domestic auto industry continues to recover from its 2009 low point of sales, profits, and cash flow, which has lifted the credit quality of the three U.S. based automakers and their suppliers. General Motors Co. and Chrysler Group LLC, the two U.S automakers restructured in bankruptcy in 2009, have recently returned to the capital markets. Ford Motor Co. avoided bankruptcy (although it completed a distressed exchange in 2009), and we raised our rating on the company several times since the summer of 2009. These three U.S. automakers represent a significant portion of light vehicle sales in North America, with close to a combined...
Action: General Comment
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research type: News
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