New York, May 25 (Reuters): Fitch Ratings cut General Motors Corp’s debt ratings to junk status on Tuesday, dealing a second blow to the world’s largest automaker after a similar move by Standard & Poor’s on May 5.

A protracted decline in the sales of SUVs, mounting competition in the truck market and rising costs will cause GM to deplete cash through at least next year, Fitch said. GM’s sales of mid-sized and large SUVs, a significant profit source, have dropped more than 20 per cent so far this year, the rating agency said.

The rating downgrade by a second agency will cement GM’s status as a junk credit, raising borrowing costs and further limiting its options for mobilising funds. GM’s ratings have slid from top ‘triple-A’ levels in the 1980s as it battled global competition and rising healthcare costs.

“Most people were expecting Fitch to cut GM to junk this year, so they did us all a favour and did it sooner rather than later,” said Brian Jacoby, auto credit analyst at Morgan Stanley in New York.