NEW YORK -- Moody's Investors Service on Thursday said it may cut the debt ratings of General Motors to junk status, citing escalating sales incentives and consumer preferences shifting to more fuel-efficient vehicles.
Downgrades usually raise a company's borrowing costs.
Moody's also said it may cut the debt ratings of GM's finance arm, General Motors Acceptance Corp., which is currently two steps above junk. GM's rating is at the bottom of investment-grade.
Moody's also cited long-term pressures on GM's market share, which will make it tougher for the auto giant to maintain its credit quality.
The two other major rating agencies have already cut GM to junk status.