S&P Cuts Mexican Auto Lenders to Junk

S&P has chopped the national-scale credit rating on GMAC Mexicana to BB from BBB minus. The action follows the downgrade of parent GMAC to B minus from B and reflects liquidity problems at parent General Motors caused by a decrease in sales. The agency also cut fellow lender Ford Credit de Mexico to BB from BBB minus. The action follows the lowering of parent Ford Motor to B minus from B, also due to weaker sales. The outlook for both is negative.