Were those cost cuts in vain? GM credit rating still 'junk' despite promise of improvement

The agencies that matter in the financial world — Moody’s, S&P and Fitch — have come out of the woodwork with a “better luck next time” for General Motors. The distressed automaker, who yesterday said it would cut its dividends in half, lower retiree heatlh care costs by $900 million and gave Rick Wagoner a 30 percent paycut, couldn’t erase enough doubt within the financial world to receive an upgrade from the all-important agencies. What’s more is that, with more and more time elapsing without a sale, GMAC isn’t likely to receive much of an upgrade either.

By Erin Mays
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The agencies that matter in the financial world — Moody’s, S&P and Fitch — have come out of the woodwork with a
“better luck next time” for General Motors. The distressed automaker, who yesterday said it would cut its
dividends in half, lower retiree heatlh care costs by $900 million and gave Rick Wagoner a 30 percent paycut,
couldn’t erase enough doubt within the financial world to receive an upgrade from the all-important agencies.
What’s more is that, with more and more time elapsing without a sale, GMAC isn’t likely to receive much of an
upgrade either.

The three agencies seem to have a “wait and see” approach before offering GM a
hand.