Fitch cuts GM, Chrysler deeper into junk, reviews Ford

NEW YORK, June 25 (Reuters) - Fitch Ratings on Wednesday cut General Motors Corp's (GM.N) and Chrysler's ratings deeper into junk, citing weaker sales, high fuel prices and a sluggish economy.

Fitch also said it will review Ford Motor Co (F.N) and Ford Motor Credit FCZ.N ratings over the next six weeks, which could also result in a downgrade.

The three big U.S. automakers are struggling as high oil prices and a weak economy depress vehicle sales.

Fitch cut the ratings of GM and Chrysler by one notch to "B-minus," six levels below investment grade from "B" with a negative outlook.

"GM's product portfolio remains misaligned with market demand," Fitch said in a statement.

A rise in demand for fuel efficient vehicles has hurt GM's market position and additional restructuring of the company will be required, Fitch said.

GM may suffer cash drains exceeding $10 billion this year and would need to raise new capital over the next 18 months to maintain a comfortable cash position of $12 billion to $14 billion.

Another downgrade could come if GM dips below $15 billion in cash, Fitch said.

Regarding Chrysler's rating cut, Fitch also cited an "unrelenting rise" in commodity prices, primarily steel.