Nice surprise for Chrysler as S&P cuts Fiat to 'junk'
The Administration seems to be counting on a partnership between Chrysler and Fiat before providing federal funds to the No.3 U.S. car company. Most observers would agree that Chrysler is the weaker of the two firms, but maybe not.
The car czar patrol may have gotten a little surprise as S&P cut Fiat to "junk."
According to Reuters, "S&P cut Fiat's rating by one notch BB-plus, the highest junk rating, from BBB-minus. The rating remains on review for another downgrade." The Chrysler part of the car company bailout may have to go back to the drawing board.
Douglas A. McIntyre is an editor at 24/7 Wall St.