Moody’s Investors Service is planning to upgrade General Motors credit ratings based on improvements it has shown in its finances, aided also by approval of a new agreement with the United Auto Workers union.
The present credit rating GM has from Moody’s is a Ba2 corporate family rating and a Baa3 secured credit rating.
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GM and the UAW labour body recently reached a tentative agreement on a new contract.
Moody’s said, after an initial review, it hoped the agreement would let GM stay competitive in North America.
Bruce Clark, a senior vice president at Moody’s said: “A critical issue in our review is whether the new contract will preserve’s GM’s new-found competitiveness and support its ability to contend with increasing volatility in the global economy.”
