General Motors and Ford that faced credit downgrade recently will see no impact on collateralised debt obligations (CDOs), according to the Fitch ratings agency report released Monday.
Most synthetic CDOs - composed of portfolios of credit derivatives – prove resilient to the woes of the carmakers, Fitch says. The analysis is expected to reassure some CDO investors within the importance of the role that GM and Ford are playing on the market.
Fitch aslo said that it is important to watch closely the fate of other carmakers linked to GM and Ford.
Fitch also suggested paying more attention to the fate of such companies as Visteon amid growing concern with General Motors and Ford.