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GM bankruptcy not 'far-fetched'

General Motors investment rating has been cut by two steps to ‘B’, five levels below investment grade, by Standard and Poor’s, the investment research firm.

"In the past we might have felt at different points that the concerns about bankruptcy risk were way overplayed," a Standard & Poor's spokesman said in an analyst conference call.

"At this juncture, it's our conclusion that this isn't a far-fetched possibility if the kind of deterioration in results we've seen over the last few quarters should continue."

Car giant GM has lost nearly $4bn (£2.2bn) this year due to high staff costs and a slump in sales of 4x4 vehicles.

The company recently announced it was closing 12 U.S plants and cutting 30,000 jobs.


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