General Motors Co.'s Proposed Unsecured Notes Assigned 'BBB' Rating

NEW YORK (S&P Global Ratings) Aug. 2, 2017--S&P Global Ratings today assigned its 'BBB' issue-level rating to Detroit-based automaker General Motors Co.'s proposed senior unsecured notes. Upon completion of the sale of its European operations to Peugeot S.A. (PSA Group), that closed on July 31, we expect GM to draw on its three-year revolving credit facility to fund payments to PSA Group for the transferred pension liabilities. The company plans to use proceeds from the notes offering to repay the draw on its credit facility and to use any remaining balance of the net proceeds for general corporate purposes. We rate the new notes the same as the corporate credit rating on the company. We believe that the sale of

...NEW YORK (S&P Global Ratings) Aug. 2, 2017--S&P Global Ratings today assigned its '###' issue-level rating to Detroit-based automaker General Motors Co.'s proposed senior unsecured notes. Upon completion of the sale of its European operations to Peugeot S.A. (PSA Group), that closed on July 31, we expect GM to draw on its three-year revolving credit facility to fund payments to PSA Group for the transferred pension liabilities. The company plans to use proceeds from the notes offering to repay the draw on its credit facility and to use any remaining balance of the net proceeds for general corporate purposes. We rate the new notes the same as the corporate credit rating on the company. We believe that the sale of its European operations will help GM insulate itself from aggressive industry pricing and increased marketing and product-launch costs in a market where it faces limited growth prospects and excess capacity. Pro forma for the sale, we expect that the EBIT margins of GM's automotive...

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