S&P affirms GM

Standard & Poor's said it affirmed its BBB corporate credit ratings and A-2 commercial paper ratings on General Motors Corp., General Motors Acceptance Corp. and all related entities. The outlook is negative.

S&P rates GM's corporate credit, equipment trust certificates and senior unsecured debt at BBB and commercial paper at A-2 and GMAC's corporate credit and senior unsecured debt at BBB and commercial paper at A-2.

S&P said the ratings on GM reflect its broad scope as the world's largest automaker, including its leading position in the still growing, relatively high-margin North American light-truck segments and its position as the No. 2 player in the rapidly growing Chinese auto market.

In addition, S&P said GM benefits from its extensive sales finance business, which is conducted through GMAC. However, the rating also reflects concerns about the profit potential of GM's automotive operations, given the increasingly competitive industry conditions in all of the company's core markets.

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