S&P drops Chrysler to CCC+

Standard & Poor's said it lowered Chrysler LLC's corporate credit rating to CCC+ from B- and the counterparty credit rating on DaimlerChrysler Financial Services Americas LLC to CCC+ from B-.

Ratings were removed from CreditWatch with negative implications, where they were placed on June 20.

The outlook is negative.

S&P said the downgrades reflect its view that the amount and structure of recently renewed bank lines leave the finance company with fewer options to overcome any new funding challenges during the next year.

Threats in the near term are the depth of economic weakness in the United States, the extent of the demand shift away from light trucks and the ability of the finance company to continue its timely access to the asset-backed securities markets in support of Chrysler's sales, according to the agency.

Ratings reflect the multiple challenges the company faces in stemming the cash outflow from its North American automotive operations, S&P noted.

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