Wednesday headlines include: General Motors apologizing for sending recall notices to the families of accident victims, Citigroup's Mexico unit getting downgraded by Moody's, Delta Airlines reporting increasing passenger metrics, J.C. Penney looking for a loan and AT&T pandering to regulators considering its bid for DirecTV.
Recall-plagued automaker General Motors (GM) apologized on Tuesday for sending recall notices to bring in their cars to have the defective ignition switches replaced to the families of accident victims. Among the people receiving recall notices was Terri DiBattista, whose 16-year-old daughter was killed in an accident in 2005. DiBattista told Reuters that she received two notices last week to bring the car, which was destroyed in the crash, to have the ignition switch and power steering fixed.
Banamex, the Mexican unit of Citigroup (C) had its credit and strength ratings cut by Moody's Investors Services on Tuesday. The company's long-term local-currency senior debt rating was lowered one notch to A3 from A2, while the company's credit rating was lowered to baa2 from baa1. Moody's said the moves were prompted by the company's $400 million loss stemming from loan fraud and also on weakness in internal controls.
Delta Airlines (DAL) said passenger revenue per seat mile rose by 7 percent year-over-year in May. Traffic rose 5.8 percent with passengers traveling 17.73 billion miles, including flights on Delta Connection. Travel domestically rose by 6.8 percent with international travel rising by 4.2 percent. The company's passenger capacity rose by 3.6 percent, with much of the increase coming on flights in and out of Latin America.
Struggling retailer J.C. Penney (JCP) is looking for a $500 million term loan as part of a $2.35 billion financing package. The loan will be used to refinance an asset-backed revolving credit line. The loan is expected to be due in 2019. A meeting with lenders is scheduled for June 5.
Telecommunications giant AT&T (T) said Tuesday that if it is allowed to purchase satellite broadcaster DirecTV (DTV), it will expand fiber connections into more homes, boosting connection speeds. Federal regulators want more broadband access and faster speeds, which makes AT&T's offer fit with policy goals.