Move over Worldcom. It is GM’s turn

General Motors has beaten all records of the financial meltdown.

Its downgrade by Standard & Poors to junk status means that the value of its outstanding debt today stands at $453bn which is fifteen times more than WorldCom the previous record holder for a corporate downgrade.

The number of companies hovering on the brink of downgrade to junk are creeping up. S&P expect default rates to pick up further. The fall of each old industrial joint to junk status means a huge debt to investors.