On Sept. 26, 2007, Standard&Poor's Ratings Services placed its long-term corporate credit ratings on Ford Motor Co. and related entities on CreditWatch with positive implications. The short-term 'B-3' ratings are not on CreditWatch. The CreditWatch action reflects today's announcement that General Motors Corp. (GM) and its main union, the United Auto Workers (UAW), have reached a tentative new labor contract that includes an agreement designed to address the massive postretirement employment benefit obligations (OPEB) associated with GM's UAW population. For now, there are few details about the specifics of the health care agreement or other important aspects of the contract such as wages, job security, and work rules. UAW members at GM must now approve the tentative contract.
