Moody's rates GM facility Baa3

Moody's Investors Service said it assigned a Baa3 rating to General Motors Co.'s newly arranged $12.5 billion credit facility and affirmed the Ba1 rating assigned to GM's senior notes. The outlook is stable.

GM's new facility has a $5 billion tranche due 2017 and a $7.5 billion tranche due 2019. It replaces an $11 billion borrowing agreement.

The agency noted that the credit facility benefits from springing upstream guarantees from GM's domestic operating subsidiaries in the event that the company has less than two investment-grade ratings. GM's $4.5 billion of senior notes do not benefit from any such upstream guarantees.

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