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

NEW YORK (S&P Global Ratings) Sept. 5, 2018--S&P Global Ratings today assigned its 'BBB' issue-level rating to Detroit-based automaker General Motors Co.'s (GM's) proposed unsecured notes. We expect the company to use the net proceeds from the sale of the notes to refinance the October 2018 maturing debt (3.5%, $1.5 billion senior unsecured notes), pre-fund certain mandatory contributions for its U.K. and Canada pension plans (approximately $600 million) due in 2019 through 2021, and for other general corporate purposes. We expect the transaction to be roughly neutral for GM's credit metrics and its operating performance should support a ratio of free cash flow-to-debt of at least 15%-25% over the next two years. Unlike GM's revolving credit facility, the company's notes

...NEW YORK (S&P Global Ratings) Sept. 5, 2018--S&P Global Ratings today assigned its '###' issue-level rating to Detroit-based automaker General Motors Co.'s (GM's) proposed unsecured notes. We expect the company to use the net proceeds from the sale of the notes to refinance the October 2018 maturing debt (3.5%, $1.5 billion senior unsecured notes), pre-fund certain mandatory contributions for its U.K. and Canada pension plans (approximately $600 million) due in 2019 through 2021, and for other general corporate purposes. We expect the transaction to be roughly neutral for GM's credit metrics and its operating performance should support a ratio of free cash flow-to-debt of at least 15%-25% over the next two years. Unlike GM's revolving credit facility, the company's notes do not benefit from a springing upstream guarantee from its domestic operating subsidiaries if the company is downgraded below investment-grade by two or more rating agencies. The notes are effectively structurally subordinated...

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