Friday, September 26, 2014

S&P Raises GM Grade Rating, Investors Lower Share Price

GM First Day as a Public Company Celebration

Though investors are not happy with General Motors as of late, Standard & Poor's is, boosting the automaker's investment-grade rating from BBB- to BB+.

Detroit Free Press reports the boost — a year after Moody's raised GM's status to investment-grade — reflects the automaker's return to sustained profitability from strong showings in the United States and China. GM's lending arm, GM Financial, also received an investment-grade rating from S&P.

Alas, investors slapped the automaker with a share price of $32.87 at the closing bell Thursday, the first time shares traded under $33 since April 14. The decline is likely the result of a new round of recalls issued earlier this week, affecting 221,000 Cadillac XTS and Chevrolet Impala models from the 2013 through 2015 model years.

The post S&P Raises GM Grade Rating, Investors Lower Share Price appeared first on The Truth About Cars.



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