NEW YORK — Basic Motors is managing a fragile balancing act because it ready to attract down $16 billion in credit score strains whereas refinancing debt of comparable dimension, dealing with an extended than anticipated shutdown of crops and appreciable income losses.
The automaker gave discover to lenders that it could borrow an current credit score facility virtually in its entirety on Tuesday.
However the resolution to attract down on the credit score strains comes as the corporate undertakes customary refinancing discussions for $16.5 billion in debt led by JP Morgan.
GM faces a major loss in income due to the shutdown of North American crops that might prolong past March 30.
On Wednesday, Moody’s Buyers Service mentioned it might downgrade GM’s Baa2 financial institution credit score facility score and a Baa3 senior unsecured debt score into junk territory.
“A extreme disruption in automotive demand because of the coronavirus mixed with the opportunity of a follow-on financial recession, will place appreciable stress on GM’s money movement…