S&P affirms General Motors

Standard & Poor’s said it affirmed its BBB- corporate credit rating on General Motors Co. The outlook remains stable.

All issue-level ratings remain unchanged.

“The ratings affirmation reflects our view that the company’s liquidity, credit metrics, and steady positive free cash flow prospects through the end of 2016 are sufficient to absorb outflows related to the announced shareholder actions without meaningfully impairing its credit quality,” said S&P credit analyst Nishit Madlani in a news release.

“We expect GM to execute on its future shareholder return policies while ensuring that cash availability remains sufficient (consistent with its minimum target of $20 billion) to meet ongoing operational needs, with some cushion for legal and other business contingencies.”

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