S&P returns GM credit rating to investment grade



Estimated read time: 1-2 minutes

This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.

DETROIT (AP) — Standard & Poor's has returned General Motors to investment grade after rating it junk for nearly a decade.

The firm upgraded GM's corporate credit rating Thursday one notch to "BBB-" — its lowest investment grade — from "BB+."

Standard & Poor's Rating Services lowered GM to junk status in 2005, four years before its bankruptcy. The automaker recovered and earned $4.7 billion last year.

S&P says it expects GM will sustain its improving profits in North America and achieve profitability in Europe soon. It also noted GM's strong sales in China.

It says GM's recall of more than 29 million vehicles this year is a negative but will manageable given the automaker's strong liquidity.

Shares in General Motors Co. rose 17 cents to $33.04 in after-hours trading.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

The Associated Press

    SIGN UP FOR THE KSL.COM NEWSLETTER

    Catch up on the top news and features from KSL.com, sent weekly.
    By subscribing, you acknowledge and agree to KSL.com's Terms of Use and Privacy Policy.

    KSL Weather Forecast