NEW YORK, Aug 7 (Reuters) - Moody’s Investors Service downgraded ratings of Chrysler LLC further into junk status and said they may still cut them further.
Moody’s lowered Chrysler’s ratings one level to “Caa1,” or seven levels below investment grade, from “B3” and also lowered the ratings of DaimlerChrysler Financial Services Americas to “B2,” five levels below high grade, from “B1.” They remain under review for further downgrade, Moody’s said.
“The downgrade of the Chrysler ratings reflects the considerable competitive and financial pressure the company faces as a result of the shift in U.S. consumer demand away from trucks and SUVs,” Moody’s said in a statement.
Moody’s analyst Bruce Clark also said a sustainable business model will require more effective cost cutting, maintenance of adequate liquidity, and a better product and pricing strategy. (Reporting by Walden Siew; Editing by Leslie Adler)