Fitch puts GM on watch

Fitch Ratings said it placed General Motors Corp.'s CCC issuer default rating, B/RR1 senior secured rating and CCC-/RR5 senior unsecured rating on Rating Watch negative. The CCC long-term issuer default rating and CCC-/RR5 senior unsecured rating of General Motors of Canada Ltd. were also placed on Rating Watch.

The agency said the Rating Watch placement reflects the company's rapidly diminishing liquidity position. Given the current liquidity level of $16.2 billion and the pace of negative cash flows, Fitch expects that GM will require direct federal assistance over the next quarter and the forbearance of trade creditors in order to avoid default.

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