Moody's Investors Services does not expect to downgrade any of the collateralized debt obligations holding General Motors or Ford Motors debt in the aftermath of the downgrades of the auto companies two weeks ago. Moody's said that such downgrades are normal and are expected from time to time and that they would not impact the credit rating of a CDO.
Moody's cut the ratings of GM and Ford to junk levels last week, ending months of speculation after Standard & Poor's and Fitch Ratings had placed similar ratings on the auto makers earlier in the year. A call to Yuri Yoshizawa, managing director at Moody's, was not returned by press time last Thursday.