Moody's reviews GM for downgrade

Moody's Investors Service said it placed General Motors Co.'s ratings under review for downgrade, including the Baa2 bank credit facility rating and the Baa3 senior unsecured debt rating.

The spread of the coronavirus outbreak, deteriorating global economic outlook, falling oil prices and asset price declines are creating a severe and extensive credit shock across many sectors, regions and markets. The combined credit effects of these developments are unprecedented, the agency said.

The automotive industry has been one of the sectors most significantly affected by the shock given its sensitivity to consumer demand and sentiment. GM remains vulnerable to shifts in market sentiment in these unprecedented operating conditions and the company is vulnerable to the outbreak continuing to spread, the agency said.

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