S&P's GM ratings unaffected

Standard & Poor's said it believes the ratings on General Motors Corp. (B/negative/B-3) will not be immediately jeopardized by the costs associated with the tentative agreement GM has reached with Delphi Corp. and the United Auto Workers union regarding significant employee reductions.

Under the agreement, U.S. hourly employees at GM and select UAW-represented members of Delphi's hourly workforce would be offered early retirement incentives and other considerations. The agreement would also permit certain UAW-represented Delphi employees to transfer to GM.

While GM would bear the majority of costs related to these measures, the agency said it believes GM's liquidity should remain adequate to meet near-term funding requirements, particularly in light of the recent sale of its 20.4% stake in Suzuki Motor Corp. for $2 billion.

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