Shares of General Motors plunged 30-one per cent today—and maybe more, it’s hard to tell because 10 minutes after the market closed stocks kept dropping due to pent up sell volume. Standard & Poor’s Ratings Services put the auto maker’s debt rating “on CreditWatch with negative implications.”
S& P credit analyst Robert Schulz said the classification reflects “the rapidly weakening state of most global automotive markets, along with capital market conditions that will remain a serious challenge for the foreseeable future.” Translation: no one can afford a car, and no one can borrow to finance one.
Even Schulz’s reassurance is unsettling.
“We believe GM currently has adequate liquidity for at least the rest of 2008 as measured by cash balances and available bank facilities, but the accelerating deterioration in industry fundamentals will be a serious challenge to liquidity during 2009,” he said.
Oh, totally great. They probably will survive through Christmas. If a doctor gave you this kind of diagnosis you’d be drawing up your bucket list right now.