General Motors Co.'s (GM) new four-year labor contract with the UAW has been ratified; we believe the contract will allow for continued profitability and cash generation in North America. GM has a two-year track record of profits and cash flow generation in its global automotive operations, supported by strong performance in North America. We believe that, as a gradual market recovery continues in North America, GM's global automotive operations will generate at least mid-single-digit EBIT margins and positive free automotive operating cash flow of at least $5 billion in 2011 (before voluntary pension contributions). We are raising our corporate credit rating on GM to 'BB+' from 'BB-'; and revising our rating outlook to stable from positive. Standard&Poor's Ratings
