S&P: General Motors loan BBB-

S&P said it assigned BBB- ratings to General Motors Co.'s $14.5 billion revolving credit facilities.

The facilities will consist of a $4 billion three-year credit facility and $10.5 billion five-year credit facility.

These facilities will replace the company's existing $12.5 billion credit facilities.

Following the creation of the new facilities, the agency said it believes that the company's automotive liquidity will remain strong and in line with most of its automotive peers.

The company has allocated a higher amount to its five-year tranche, which is roughly similar to what its peer Ford Motor Co. completed with the last amendment to its revolving credit facility, the agency said.

General Motors is expected to use the new revolver to fund working capital, issue letters of credit, help manage intra-year seasonality in its cash flows and potentially fund the company's strategic cash requirements, S&P said.

It is unlikely that the company will keep the revolver drawn for an extended period as it views it as backstop for unforeseen events, such as a severe industry downturn, the agency added.

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