Reply #80: Moody's cuts Delphi's ratings deeper into junk

[UpInArms]

http://www.reuters.com/financeNewsArticle.jhtml?type=bondsNews&storyID=8546765§ion=investing

NEW YORK, May 19 (Reuters) - Moody's Investors Service on Thursday slashed its ratings on Delphi Corp. (DPH.N: Quote, Profile, Research) deeper into junk territory, saying the auto parts supplier is likely to post more losses as North American automakers cut output.

The outlook is negative, meaning another rating downgrade is likely over the next 12 to 18 months. Ratings downgrades usually raise borrowing costs.

Delphi's near-term profit prospects remain uncertain, given continued pressures on the auto industry, especially Delphi's largest customer, General Motors Corp. (GM.N: Quote, Profile, Research) , Moody's said in a statement.

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