Moody’s revises General Motors to positive

Moody's Investors Service said it affirmed the Baa3 unsecured credit facility rating and the Ba1 senior note rating of General Motors Co. (GM) and affirmed the Ba1 senior note rating of General Motors Financial Co., Inc. (GMF).

The outlooks were changed to positive from stable.

"The positive outlook for GM reflects our expectation that the company will continue to strengthen its performance in North America and Europe, and that it will maintain a strong position in China. In addition, we expect that the company will continue to make progress in building an operating structure that can contend with the risk inherent in the global automotive sector," Moody’s senior vice president Bruce Clark said in a news release.

The sector's risks include: pronounced cyclicality; excess capacity; and the intense competitive pressure posed by as many as 10 auto manufacturers operating in each of the major regional markets, the agency said.

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