JAPAN: Suzuki rating unaffected if GM sells stake
Standard & Poor's (S&) has said its ratings on Suzuki will remain unaffected by the fact that GM has reduced its shareholding in the company, reported Kyodo News. On 6 March GM sold a 17% stake in Suzuki Motor, but kept a 3% stake.
S&P has currently assigned an A-minus corporate credit rating to Suzuki, which reflects its strong position in the Japanese mini-vehicle market and in emerging markets.
However, S&P suggested that if Suzuki buys back a significant number of shares (which it has) that could affect its financial profile and have a negative impact on its rating.
GM told Reuters that there have been no discussions concerning Suzuki's shareholding in GM Daewoo, nor has GM made any decision on its 7.9% stake in Isuzu.