CHRYSLER <C> AND UNITS AFFIRMED BY S/P
Standard and Poor's Corp said it
affirmed the ratings on 19 billion dlrs of debt of Chrysler
Corp and related entities.
    S and P cited the acquisition of AMC as strongly negative.
It questioned the long-term srategic value, as well as a high
price of about two billion dlrs.
    Affirmed were the BBB senior debt of Chrysler and its unit
Chrysler Financial, Chrysler Financial's A-2 domestic and
Eurocommercial paper, Chrysler Capital Realty Inc's A-2
commercial paper and Chrysler Financial's BBB-minus
subordinated debt.
    The BBB senior debt of two international units, Chrysler
Credit Canada Ltd and Chrysler Overseas Capital Corp, was also
affirmed.
    Chrysler's debt issues were put on creditwatch on March
nine after the automaker announced plans to acquire American
Motors Corp <AMO>. AMC's debt is still on creditwatch with
positive implications pending the deal's outcome.
    The AMC purchase shows a strongly aggressive move on
Chrysler's part to increase market share at a time when
industry competition is intensely competitive, S and P said.
This is a change in the company's previous strategy.
 Reuter
