After being sold to Cerberus Capital Management by Daimler Chrysler , 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.
