Standard and Poor’s Rating Services lowered its debt ratings for Chrysler LLC and General Motors Corp

Standard and Poor’s Rating Services lowered its debt ratings for Chrysler LLC and General Motors Corp., and added that bankruptcy is likely and could lead to the break-up of Chrysler.

The agency issued the warning Friday, saying it was lowering the debt ratings because of the increased possibility of bankruptcy if the two members of Detroit’s “Big Three” automakers don’t meet deadlines set by President Barack Obama’s administration, according to numerous media reports

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Obama’s auto plan calls for Chrysler to reach a deal for a merger or partnership with Italian automaker Fiat by the end of April, and for General Motors (NYSE:GM) to come up with a plan to restructure the company by the end of May.S&P Recovery Analyst Greg Maddock told Reuters news agency in an interview that he believes if Chrysler were to go into bankruptcy it would go into liquidation and sell its assets.