Fitch: GM, GMAC unaffected

Fitch Ratings said the settlement reached between General Motors Corp. and Fiat is in line with expectations previously incorporated into the ratings of GM and GMAC, and therefore will have no affect. The ratings remain at BBB with a negative outlook.

Fitch said the settlement marginally weakens a GM balance sheet that has deteriorated over the past several years, but also removes a large uncertainty regarding the ability of Fiat to exercise the put of its auto operations to GM.

The ratings and outlook are based on numerous challenges to GM's operating and financial profile over the near term, including a deteriorating product mix that is coming under increasing competitive pressure, a car portfolio that remains weak, a long string of losses in Europe, a high and relatively inflexible fixed-cost structure and significant post-employment benefit obligations, according to Fitch.

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