S&P rates General Motors revolver BBB

S&P said it assigned a BBB rating to General Motors Co.'s new revolver with an initial borrowing capacity of $3 billion, reducing to $2 billion in July 2020, and due in January 2022.

The proceeds will be used to fund a portion of the cash outflows of $2 billion over the next two years for spend related to the reduction of its manufacturing capacity and salaried workforce, which it announced in November 2018, S&P said.

The agency said the revolver will enhance General Motors' financial flexibility.

The company expects to realize roughly $6 billion of run-rate cash flow savings by year-end 2020, S&P said.

The agency said it believes that General Motors will pay down its borrowings under this new supplemental revolving credit facility with its internal cash flow.

The company's liquidity is expected to remain strong and in line with the liquidity positions of most of its global automotive peers, S&P added.

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