Bookmarking
Auto on Info pages
Home or
Site Layout or
Site Index or
Quick Jumps or
Search Engine Directory or
The Mart or
The Links or
Yahoo AutosAuto News, Analysis and Editorial
Former
Parts Division GM Dumped on Shareholders Has Rating Slashed: S&P Cuts Delphi's Debt Deep into Junk
Links to Amazon.com
Visitor support makes this site possible. Please shop at Amazon.com via Auto on Info. Thank you. Men's Fine Tie Clips and Ties Forzieri tie clips Men's Ties by Villa Bolgheri Men's Ties by Jos. A. Bank To view more men's ties, icons, and search phrases, click here. Men's Watches Men's Watches by Casio Men's Watches by Cartier Men's Watches by Omega To view more men's watches, icons, and search phrases, click here. Business Totes, Business Briefs, and Briefcases for Men and Women L.A.P.A. briefcases Hartmann briefcases Schlesinger briefcases High Sierra briefcases To view more business totes, business briefs, and briefcases, icons, and search phrases, click here. Auto on Info August 2005
Former Parts Division GM Dumped on Shareholders Has Rating Slashed: S&P Cuts Delphi's Debt Deep into Junk
The Wall Street Journal reports that Standard and Poor's Rating Service has cut Delphi Corporation's senior unsecured debt to CCC- from B-. This is the second cut within four months. (See "S&P Cuts Delphi's Long-Term Debt to Five Notches into Junk," Auto on Info, May 2005.) The following table puts the cut into perspective.
S&P Long-Term Debt Ratings Rating Manufacturer Investment Grade Rating AAA Toyota Motor Corporation AA+ AA AA- A+ Honda Motor Company A A- BBB+ Nissan Motor Company BBB BBB- Junk Grade Rating BB+ Ford Motor Company BB General Motors Corporation BB- B+ B B- CCC+ CCC CCC- Delphi Corporation D Delphi's current financial condition is less than enviable. It has reported a string of losses of late and for all of 2004 it reported a loss of $4.75 billion. The Wall Street Journal states its current debt to be about $4 billion and its pension and other employee-benefit obligations to be $14.5 billion. Of the latter, the Journal reports $4.3 billion to be underfunded pension liabilities and $9.6 billion to be retiree health-care liabilities, per Delphi.
Delphi, General Motors Corporation's largest auto parts supplier, was spun off by GM in 1999, subject to one or more agreements with the United Auto Workers. By reason of these agreements and the recentness of the spin-off, GM would likely be found obligated for a sizable portion of Delphi's obligations in the event of the latter's collapse or Chapter 11 reorganization.
In a quest to avoid collapse or Chapter 11 reorganization, Delphi has entered into discussions seeking help from GM and the United Auto Workers. The latter must consent to any additional plant closings prior to 2007.
GM is resisting an assumption of direct liability of the size of that assumed by Ford Motor Company from its former parts division, Visteon Corporation (which was dealt a similar set of cards); it is likely hoping for big UAW concessions. However, with $20 billion of borrowed cash on hand and more money coming in from the sale of a sizable chunk of its financing business, GM may have difficulty getting the UAW to budge.
Nonetheless, GM's marketing department may have the expertise at selling dreams that might benefit the shareholders and bondholders of both Delphi and GM.
Sources for rating cut and financial condition of Delphi Corporation: "Credit Ratings for Delphi Are Downgraded," Simona Covel, Wall Street Journal, August 8, 2005, p. A2, "Delphi Posts Loss; Revenue Drops 6.9%," Lee Hawkins, Jr., Wall Street Journal, August 9, 2005, p. A3, "Delphi, Visteon Post Losses on Labor Costs," Dee-Ann Durbin, the Associated Press, available at Yahoo! News, and "Delphi Posts Loss, Bankruptcy Is Possible," David Bailey, Reuters, available at Yahoo! News
Links to Amazon.com
Fine Women's Watches Women's Watches by Van Cleef and Arpels Women's Watches by Movado To view more women's watches, icons, and search phrases, click here. Wallets for Men and Women Rolf’s wallets The Sak wallets Sydney Love wallets To view more fine wallets, icons, and search phrases, click here. Handbags Gucci handbags Prada handbags RG House of Florence handbags Caterina Lucchi handbags Ellington handbags To view more fine handbags, icons, and search phrases, click here. Consumer Lit BusinessWeek Consumer Reports magazine Tell your friends, colleagues, and coworkers, "I bought it at Amazon.com via Auto on Info." Internet's provisioner of detailed auto quality news and information since 2001
Automotive News Menu Pages Auto Manufacturers: Toyota - Honda - Subaru - Nissan - Ford - Chrysler - General Motors - Volkswagen Topics: Reviews - Recalls - Safety Investigations - Safety Test Results - Automotive Excellence - Automotive Dishonor, Discredit, or Demerit - Lawsuits - Automotive Finances - Car and Truck Sales and Market Shares - Auto on Info
Search Engine Directory This table is provided primarily to give the visitor quick access to those search engines that site manager has found to be more consistently useful for information acquisition. For descriptions, strengths, weaknesses, comments, and other names and formats by which the following search engines are known, go to Search Engine Directory Page. Search Engines Yahoo! Teoma Wisenut DMOZ Gigablast Metasearch Engine
Product Search Engine
Comments: Shopping at Amazon.com via this link helps support this site.
Auto on Info Standings for Selected Search Phrases on Auto News
Site Rank in Results for Search Phrase Car Quality News Site Rank in Results for Search Phrase Auto Quality News Site Rank in Results for Search Phrase Auto News First by Yahoo! Search from 5,230,000 results First by Yahoo! Search from 3,510,000 results Thirty-ninth by Yahoo! Search from 37,600,000 results First by MSN Search from 1,110,112 results First by MSN Search from 716,283 results Fifteenth by MSN Search from 7,682,302 results Fifteenth by Google from 3,730,000 results Tenth by Google from 2,400,000 results Eightieth by Google from 7,450,000 results Standings are as of 14/03/2004.
| Visitor support makes this site possible. So please shop often via Auto on Info, and tell your friends, colleagues, and associates that you bought it "via Auto on Info." Thank you. | |||||||||||||||||||||||||||||||||||||||||||||
 |
|||||||||||||||||||||||||||||||||||||||||||||
 |
 |
 |
 |
 |
 |
 |
 |
||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||||||||||||||||
|
|||||||||||||||||||||||||||||||||||||||||||||
