GM stock raised from junk status
by The Associated Press
Rating service Standard & Poor's lowered GM to junk status in 2005, four years before the automaker declared bankruptcy
DETROIT—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 one notch to BBB- from BB+, its lowest grade.
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 is manageable given the automaker’s strong liquidity.
