General Motors received a credit rating upgrade from one of the three major ratings agencies today in a vote of confidence that the company has improved its financial standing and can weather challenges in Europe.
Fitch Ratings upgraded GM’s issuer default rating from BB to BB+ and said the outlook for the future is stable.
“Since exiting bankruptcy in 2009, GM has adhered to a strategy of maintaining a low level of automotive debt on its balance sheet, while also maintaining a high level of cash and credit facility availability,” Fitch said in a statement. “This has provided the company with substantial financial flexibility that would allow it to withstand a future auto industry downturn.”
GM shares were down 13 cents shortly after noon to $21.21.