Standard & Poor's Ratings Services on Monday cut its corporate credit rating on Chrysler LLC by four notches, sending it further into junk status, because the automaker will ask for concessions from its secured lenders as part of its deal for government loans.
S&P lowered its corporate credit rating to "CC" from "CCC+" and lowered the issue-level ratings on the company's senior secured debt. The outlook is negative.
Chrysler said Friday that it would get $4 billion in emergency government loans, and as part of that deal, it will seek concessions from other lenders. The deal gives Chrysler and General Motors Corp. until March 31 to come up with plans to ensure their viability.
