You have reached your limit of free articles this month.

Enjoy unlimited access to SpringfieldNewsSun.com

Starting at just 99¢ for 8 weeks.

GREAT REASONS TO SUBSCRIBE TODAY!

  • IN-DEPTH REPORTING
  • INTERACTIVE STORYTELLING
  • NEW TOPICS & COVERAGE
  • ePAPER
X

You have read of premium articles.

Get unlimited access to all of our breaking news, in-depth coverage and interactive features. Starting at just 99c for 8 weeks.

X

Welcome to SpringfieldNewsSun.com

Your source for Clark and Champaign counties’ hometown news. All readers have free access to a limited number of stories every month.

If you are a News-Sun subscriber, please take a moment to login for unlimited access.

Moody’s restores GM debt to investment grade


DETROIT  — A key ratings agency has restored General Motors’ debt to investment grade status, eight years after the company lost the rating as it spiraled toward bankruptcy protection.

The upgrade came on Monday morning, shortly after GM announced plans to buy back high-interest preferred stock from a union retiree health care trust fund for $3.2 billion.

Moody’s Investors Service raised GM’s corporate debt from Ba1, which is junk status, to Baa3, the lowest investment grade rating. Two other ratings agencies, Fitch and Standard & Poors, still have GM at junk status. The upgrade likely means GM will get lower interest rates when it borrows money in the future.

GM’s credit ratings have been in junk territory since 2005, when the company was struggling with huge debts, falling U.S. market share and factories cranking out more cars than people were buying. GM closed plants and erased much of its debt with a 2009 bankruptcy. It has made an annual profit every year since 2010.

In August, Fitch raised GM’s outlook to positive from stable and said it could upgrade GM within two years. Standard and Poor’s also raised GM’s outlook to positive earlier this month.

Moody’s said in a statement that it based the upgrade on expectations that GM will gain sales with new products in a healthy U.S. market, and because of its solid position in China.

GM stock is up 28 percent so far this year.

Earlier Monday, the company announced that it would buy back 120 million preferred shares from a United Auto Workers retiree health care trust for $27 per share. GM will finance the buyback through the sale of senior unsecured notes with five-, 10- or 30-year terms.


Reader Comments ...


Next Up in Business

INSIDE LOOK: Nearly $1M home for sale near Piqua
INSIDE LOOK: Nearly $1M home for sale near Piqua

A custom-built home on U.S. 36 near Piqua is for sale for more nearly $1 million. The custom two-story home is located at 1538 E. U.S. 36 outside Piqua in Miami County and is listed for sale by Coldwell Banker at $949,900. The house has 8,500 square feet of living space, with five bedrooms, five full baths, 3 half baths, 3 fireplaces, study, media...
Nordstrom selling work jeans covered in fake mud for $425
Nordstrom selling work jeans covered in fake mud for $425

  After it was ridiculed for selling designer rocks at Christmas, Nordstrom may have topped itself with its latest offer. The department store is offering a pair of jean covered in fake mud for a whopping $425. The retailer described its new Barracuda Straight Leg Jeans on its website as "rugged Americana workwear that's seen some...
STORE CLOSINGS: Sears to close 50 auto centers
STORE CLOSINGS: Sears to close 50 auto centers

Sears Holdings is set to close 50 Auto Center locations, the company announced. Sears updated investors last week on its strategic restructuring program, stating the company aimed to save $1.25 billion through some store closures in 2017. The company already announced it would close 108 Kmart stores and 42 Sears locations. » RETAIL APOCALYPSE...
Two area health systems named Top 15 in nation
Two area health systems named Top 15 in nation

Kettering Health Network and Mercy Health have been named two of the Top 15 health systems in the nation by the international business research firm Truven Health Analytics. It’s the fifth appearance on the Top 15 list for the Dayton-based Kettering system, comprised of eight hospitals, including Kettering Medical Center, Fort Hamilton, Soin...
675 Ohioans complained about mortgage servicer sued by feds
675 Ohioans complained about mortgage servicer sued by feds

State and federal authorities have sued mortgage servicer Ocwen Financial Corp., saying the company botched the handling of millions of mortgage accounts, including 675 Ohio complaints. The Consumer Financial Protection Bureau said Thursday that the accounts Ocwen serviced were riddled with errors throughout the repayment process. It said the company...
More Stories