S&P gives General Motors convertibles B-

Standard & Poor's said it assigned its B- rating to General Motors Corp.'s (B/negative/B-3) proposed $1.1 billion senior unsecured convertible bonds due June 1, 2009.

Proceeds will be used to replenish cash balances, the agency said, noting that GM has used cash recently to retire a $1.1 billion convertible bond put to the company in March and to make a $1.0 billion cash payment to 49%-owned GMAC LLC, helping to shore up GMAC's capital and liquidity following the close of the sale of a majority stake to an investor group.

GM also announced it has commitments for a $4.1 billion 364-day secured revolving credit agreement, collateralized by a pledge of its common interest in GMAC stock, the agency added, stating that these transactions will bolster GM's existing liquidity position.

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