Fitch rates General Motors notes BBB-

Fitch Ratings said it assigned a rating of BBB- to General Motors Co.’s proposed issuance of $2 billion in senior unsecured notes.

The company’s issuer default rating is BBB- and the outlook is stable.

The proposed notes will be issued in two series with one issue of about $1 billion due in 2036 and another issue of about $1 billion due 2046.

The notes will be issued under a supplement to the indenture that also covers the company’s existing $7 billion in senior unsecured notes issued in 2013 and 2014, Fitch said.

The proceeds will be used to fund a discretionary contribution to its U.S. defined-benefit pension plan, with any remaining proceeds used for general corporate purposes, the agency said.

Although the proposed notes will result in a slight increase in leverage, Fitch said it expects leverage will remain low for the rating category over the intermediate term.

The company’s planned discretionary contribution to the pension plan is consistent with its intention to continue improving the funded status of its U.S. pension, while also de-risking it, Fitch said.

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