After being sold to Cerberus Capital Management by DaimlerChrysler, Moody’s Investors Service and Standard and Poor’s have both rated Chrysler a junk bond. Chrysler’s automotive division, as well as its finance arm, were both given the “below investment grade” rating.
Chrysler’s automotive division was rated B3 by Moody’s, six levels below investment grade, according to Bloomberg News. Chrysler Financial was rated two levels higher, B1. S&P gave both units a B ranking, which is five levels below investment grade.
Both divisions are seeking substantial loans to help offset the cost of Cerberus’ new ownership. Chrysler met with J.P. Morgan Chase and Company last week to discuss options for the carmaker.
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07/02, 1:06 PM
posted by:
Piablo
Those S&P guys must be GM fans…
07/02, 1:08 PM
posted by:
Veda
And who would actually invest on their stocks?
07/02, 1:28 PM
posted by:
purdue
People that buy LOW and sell HIGH, might, for one. Or, you can just buy high.
07/02, 2:01 PM
posted by:
jbird97
time to buy, sell after challenger release maybe?
07/02, 2:05 PM
posted by:
global_lightning
Junk, just like their cars… (duck!)
07/02, 2:36 PM
posted by:
Stuart
I don’t tink anyone can atually buy any share when you consider cerburus has 80.1% and daimler 19.9
07/02, 7:56 PM
posted by:
S-60-driver
not really, the truth is that Moody heard about Chrysler keeping the Crossfire alive for an another year, they rated them as junk!
07/02, 11:32 PM
posted by:
Elvio
The Challenger they are making also a junk.
07/03, 5:01 AM
posted by:
sunshine1810
Everything Chrysler makes is rubbish including their stock. The Dodge Challenger might be a good car from an enthusiast point of view but it is not expected to be the bread and butter of Dodge. The Challenger is a halo car which will help them slightly, but the rest of their line-up is absolutely worthless. Walter Chrysler and the Dodge brothers would be sick if they knew how awful their cars are.
07/03, 6:18 AM
posted by:
Deanster
Good opportunity to buy in.