Fitch Ratings on Friday increased the issuer default rating of General Motors Co. from BB to BB+, a level just below investment grade status. The ratings company expressed that the automaker has a stable outlook thanks to continuous generation of positive free cash flow, strong liquidity, reduced pension obligations, and a line-up of improved products.
Fitch also affirmed the BB rating of General Motors Financial Co. Inc..
The GM Authority Take
So much for a second bankruptcy. On a more serious note, we wonder if the timing of Fitch’s announcement has anything to do with GM’s quest to double its line of credit to become an even more attractive firm.