S&P in a statement said the possible move is due to weakening auto sales worldwide, and expectations of a tight credit market might make it tough for GM to borrow.
The news sent shares of GM down more than 30% on the day, accelerating a decline that had already dragged the company's shares to levels not seen since the 1950s.
S&P said it still believes GM has enough cash for 2008, but worsening conditions could make things difficult in 2009. GM has said it hopes to raise upwards of $15 billion via asset sales, job cuts and new borrowings, but the tight credit markets could make that much-needed liquidity difficult to obtain. - Lou Whiteman
See Dealscape post on GM shares hitting historical lows
See DealWatch: Autos
