Fitch lifts General Motors from junk

Fitch Ratings said it upgraded the issuer default rating for General Motors Co. to BBB- from BB+.

The agency also said it upgraded the company’s unsecured revolving credit facility rating and senior unsecured notes ratings to BBB- from BB+.

The outlook is stable.

Fitch also said it upgraded the long-term issuer default ratings and senior unsecured debt ratings for General Motors Financial Co., Inc. and its affiliates to BBB- from BB+ and the short-term issuer default ratings for General Motors Financial and its affiliates to F3 from B.

The outlook is stable.

The upgrades reflect the ongoing fundamental improvement in the company’s core business over the past several years, Fitch said.

Recent events pertaining to last year’s recalls also increased confidence that the company has the financial flexibility to navigate the remaining issues while maintaining an investment-grade credit profile, the agency said.

Fitch said it expects the profitability of the GM’s key North American business to remain on track to meet the company’s 10% EBIT-adjusted margin target in 2016 due to a combination of pricing strength, positive vehicle mix and further operational efficiency improvements.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.