Delphi's Credit Ratings Cut, Journal Reports

uto-parts supplier Delphi Corp. had its credit rating downgraded by three ratings services and could face bankruptcy protection, the Wall Street Journal reported Monday.

General Motors Corp. spun off Delphi in 1999 and Delphi, like GM, is seeking concessions from its mostly unionized work force, the paper said. Delphi has about 35,000 employees.

Delphi, which has had losses in three of its first six years since being spun off from General Motors Corp., said in March that its chief accountant and controller left the company and that it would restate past financials that had overstated its revenue and income in 2000 and 2001. (Click here for previous coverage.)

Standard & Poor’s lowered Delphi’s corporate credit rating to CCC-plus from B-plus and its senior unsecured rating to CCC-minus — the last rating before a company goes into default — from B-minus, the Journal said.

Moody’s Investors Service cut Delphi’s corporate rating to CAA-1 from B-2 and Fitch Ratings cut its senior unsecured rating to CCC from B.