General Motors Co.'s New $3.0 Billion Revolving Credit Facility Maturing January 2022 Rated 'BBB'

NEW YORK (S&P Global Ratings) Jan. 14, 2019--S&P Global Ratings today assigned its 'BBB' issue-level rating to Detroit-based automaker General Motors Co.'s (GM) new revolver with an initial borrowing capacity of $3.0 billion, reducing to $2.0 billion in July 2020, maturing in January 2022. We expect that the company will use the proceeds from this facility to fund a portion of the cash outflows of $2 billion over the next two years for spend related to the reduction of its manufacturing capacity and salaried workforce (mostly in the U.S. and Canada), which it announced in November 2018. We also anticipate that the revolver will enhance GM's financial flexibility. The company expects to realize roughly $6 billion of run-rate cash flow

...NEW YORK (S&P Global Ratings) Jan. 14, 2019--S&P Global Ratings today assigned its '###' issue-level rating to Detroit-based automaker General Motors Co.'s (GM) new revolver with an initial borrowing capacity of $3.0 billion, reducing to $2.0 billion in July 2020, maturing in January 2022. We expect that the company will use the proceeds from this facility to fund a portion of the cash outflows of $2 billion over the next two years for spend related to the reduction of its manufacturing capacity and salaried workforce (mostly in the U.S. and Canada), which it announced in November 2018. We also anticipate that the revolver will enhance GM's financial flexibility. The company expects to realize roughly $6 billion of run-rate cash flow savings by year-end 2020. We believe that GM will pay down its borrowings under this new supplemental revolving credit facility with its internal cash flow. We expect the transaction to support GM's credit metrics over the next two years and believe that its...

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