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Fitch lifts some General Motors ratings
Fitch Ratings said it affirmed the issuer default ratings of General Motors Co. and its General Motors Holdings LLC subsidiary at BB+.
Fitch also said it upgraded the issuer default rating of General Motors Financial Co., Inc., General Motor's captive finance subsidiary, to BB+ from BB.
The outlook on General Motors and General Motors Holdings also was revised to positive from stable. The ratings also were removed from Rating Watch positive.
Fitch said it affirmed General Motors Holdings' secured revolving credit facility rating at BBB- and General Motors series B preferred stock rating at BB-. General Motors Financial's senior unsecured rating was upgraded to BB+ from BB.
Fitch also said it upgraded the long-term issuer default rating and affirmed the short-term issuer default rating of GMAC Bank GmbH and affirmed the short-term issuer default rating of GMAC (UK) plc following General Motor Financial's purchase of the entities during its acquisition of Ally Financial Inc.'s international operations.
The ratings are supported by the group's position as one of the most geographically diverse global automakers with a strong market presence in key developing markets, such as China, Southeast Asia and Latin America, Fitch said.
The ratings also reflect an expectation that a continued improvement in the company's operational performance, an increase in the profitability of its North American operations, a strengthening of its global product portfolio and a stabilization in its European business could lead to an upgrade within the next 24 months, the agency said.
A further reduction in the company's substantial pension obligations also would support a positive rating action, as would a further increase in both market share and net pricing in its key global markets, Fitch said.
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