July 2, 2007 (LPAC) -- Both Moody's and Standard & Poor's rating services have dumped Chrysler into "speculative-grade credit rating" status, commonly called "junk." The fourth largest American auto maker is six levels below investment grade at Moody's, and five under at S&P, with the financial services division only slightly higher. As the high-yield loan market disintegrates due to the sub-prime mortgage collapse, Chrysler's efforts to raise $20 billion to pay for own buyout by hedge fund vulture Cerberus, are running into trouble. Chrysler forced to offer loan-shark rates of 6 percentage points over Libor, according to Bloomberg, quoting sources who refused to be identified.