Fitch upgrades GM to investment grade
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Fitch Ratings announced today that it h-AS updated Gm' standing from BB+ to BBB-, demoting it to an investment-grade ranking for the very first time in a number of years. With this particular upgrade, General Motors is now considered investing-worthy by all leading U.S. standings services.
"Fitch's information today affirms that we're delivering on our dedication to create strong operating outcome and execute our client-centered strategy," GM CEO Mary Barra stated. "But, as much as we enjoy this acknowledgement, we're focused on reaching even more powerful functionality and improving long term shareholder-value in the past few years to come."In its statement, Fitch mentioned several variables that may lead to GM's standing shifting as time goes by. Upgrade variables would add a continuing powerful North American operating margin, enhancing to additional profitability in Europe and expanding international market share and revenue (having a concentration on the US and China). Possible pitfalls would contain several things which have got General Motors Corporation in the headlines in the last year, including lengthy drops in General Motors Company's accessible cash (whether due to recalls, coverage adjustments, or the need to shore-up GM Fiscal's liquidity for any reason), sustained periods of negative income, and possibly most ominously, the results of an unforeseen merger or acquisition that negatively affects GM's credit account. Fitch downgraded General Motors and GM Fiscal to BB+ standings in August, 2012 and August, 2013, respectively. U.S. standings services raised GM's credit rating to investment-level over the previous year, with Fitch being the last of the leading services to do so. Read Source
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