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DETROIT (AP) - Moody's Investors Service lowered General Motors Corp.'s debt rating further into "junk" territory Tuesday, citing uncertainty the company can establish competitive wages and benefits without filing for bankruptcy protection.
Moody's lowered GM's $30 billion in debt one level to B2 from B1, five rungs below investment grade. It also assigned the company a negative outlook, actions that will make it harder for the world's largest automaker to borrow money. Moody's had placed GM under review for a possible downgrade on Jan. 26.
The credit agency didn't take any action on GM's finance arm, General Motors Acceptance Corp. GM is trying to sell a majority stake in GMAC in order to boost its credit ratings.
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