Delphi?s Credit Rating Dropped to Junk Bond Status

TROY – Delphi Corp, the largest Tier One auto supplier, saw its credit rating cut to junk status by Standard & Poor’s on Tuesday.

Production cuts at General Motors have led to Delphi?s slide; the cuts will impact Delphi?s earnings for next year, which S&P reflected in its new rating of BB-plus for Delphi, down from BBB-minus.

GM accounts for 55 percent of Delphi?s sales, and is planning a 7-percent production cut in the first quarter of 2005, S&P said.

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