Moody's downgrades GM bonds
Moody's Investors Service said yesterday that it had lowered its ratings on $70 billion of debt issued by General Motors Corp. and its subsidiaries, General Motors Acceptance Corp. and GM Hughes Electronics Corp. Senior debt of the nation's largest automaker was lowered to "Baa1" from "A2." Moody's also lowered the commercial-paper ratings of GMAC and GM's Hughes Electronics, to Prime-2 from Prime-1.
The downgrades signify a slightly higher risk of owning GM bonds and commercial paper. As a result, the automaker will probably have to offer investors a higher interest rate when it sells bonds. Moody's said the downgrades reflect GM's weakening position in the North American auto market.
Canton project's site faces auction
A major Canton condominium development site will go to auction Dec. 17 when A. J. Billig & Co. tries to sell land once slated to become Lighthouse Point, a luxury development that fell victim to the recession. The land for the stalled development is being sold on behalf of Maryland National Bank.
The developers, Baltimore International Yachting Centre L.P., owed Maryland National $8.65 million on June 1, from money borrowed against the 7.9-acre tract on Boston Street. The developers' plan had called for construction of about 450 residential units, 75,000 square feet of commercial space and 250,000 square feet of retail space.