GM announced that Moody’s Investors Service has upgraded the automaker to the investment grade rating, to Baa3 from Ba1.
According to Moody’s, GM’s upgrade reflects its belief that the US automaker is in a competitive position and that its credit metrics will see a continuous improvement, based on the strength of the car maker’s new products introduced in the American market. The agency also took into consideration GM’s solid position in China, the world’s largest auto market and its strategy on keeping a robust liquidity profile.
“Good things happen when you build great cars and trucks and deliver strong financial results,” said Dan Akerson, GM chairman and CEO. “Today’s news from Moody’s further underscores that this is exactly what we are doing today.”
In May 2012 Moody’s Investors Service said that they will leave unchanged GM’s Ba1 credit rating, adding that the automaker’s outlook remained positive, relying on the company’s new product introductions to the market.
“GM’s credit quality continues to improve and the company remains on track to regain an investment-grade credit rating over the course of the next 12 months,” Bruce Clark, Moody’s lead analyst for North America, said in a statement.