Shares of General Motors (GM) have fallen after the company’s credit rating was downgraded by a major ratings agency. The downgrade reflects concerns about the automaker’s financial health, including declining sales and increasing pension and healthcare costs.
Analysts suggest the lowered credit rating could make it more expensive for GM to borrow money, further straining its finances. The company is currently undertaking restructuring efforts to improve its profitability and competitiveness.
The stock’s decline reflects investor anxiety over the long-term viability of GM in an increasingly competitive automotive market. The downgrade has also impacted the shares of GM’s suppliers and other related companies.