Moody’s applies Ba1 to GM notes

Moody's Investors Service said it assigned a Ba1 rating to General Motors Co.’s (GM) $2 billion offering of senior unsecured notes.

The Ba1 rating on GM's existing $7 billion of senior unsecured notes and the Baa3 rating on its $12.5 billion senior unsecured credit facility are unchanged.

The outlook is positive.

GM's long-term ratings and positive outlook reflect Moody's expectation that the company will continue to strengthen its performance in North America and Europe, and that it will maintain a strong position in China.

In addition, the agency expects that the company will continue to make progress in building an operating structure that can contend with the risk inherent in the global automotive sector.

During 2016, GM's operating performance and credit metrics should continue to improve as a result of: healthy automotive demand fundamentals in North America, rebounding demand in Europe, and continued adherence to a highly disciplined operating model, Moody’s said.

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