Ford_News
10-03-2011, 08:35 AM
Filed under: Ford (http://www.autoblog.com/category/ford/), GM (http://www.autoblog.com/category/gm/), UAW/Unions (http://www.autoblog.com/category/uaw-unions/)
http://www.blogcdn.com/www.autoblog.com/media/2011/10/gm-top-of-rencen-628.jpg (http://www.autonews.com/apps/pbcs.dll/article?AID=/20110929/OEM/110929884/1424)
General Motors (http://autoblog.com/make/gm/) recently came to an agreement with the United Auto Workers on a new contract, and it appears at least one ratings agency likes the fine print. Automotive News reports that Standard & Poor's has raised GM's rating from BB- to BB+, while also giving the rating outlook a bump from "positive" to "stable." That ratings bump now makes GM one step below investment grade in the eyes of S&P.
As you might imagine, the ratings jump has everything to do with The General's ability to earn the almighty dollar. S&P said in a statement that GM's two-year profit streak, strong cash flow and solid performance around the globe were the catalysts for the ratings change.
Now that GM has received a pat on the back from S&P, could Ford (http://autoblog.com/make/ford/) be next? Looks like it. The ratings agency announced that The Blue Oval will be considered for an upgrade once the company completes its UAW contract talks. S&P currently has Ford rated at BB-.GM earns higher credit rating with new labor deal (http://www.autoblog.com/2011/10/03/gm-earns-higher-credit-rating-with-new-labor-deal/) originally appeared on Autoblog (http://www.autoblog.com) on Mon, 03 Oct 2011 10:31:00 EST. Please see our terms for use of feeds (http://www.weblogsinc.com/feed-terms/).
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http://www.blogcdn.com/www.autoblog.com/media/2011/10/gm-top-of-rencen-628.jpg (http://www.autonews.com/apps/pbcs.dll/article?AID=/20110929/OEM/110929884/1424)
General Motors (http://autoblog.com/make/gm/) recently came to an agreement with the United Auto Workers on a new contract, and it appears at least one ratings agency likes the fine print. Automotive News reports that Standard & Poor's has raised GM's rating from BB- to BB+, while also giving the rating outlook a bump from "positive" to "stable." That ratings bump now makes GM one step below investment grade in the eyes of S&P.
As you might imagine, the ratings jump has everything to do with The General's ability to earn the almighty dollar. S&P said in a statement that GM's two-year profit streak, strong cash flow and solid performance around the globe were the catalysts for the ratings change.
Now that GM has received a pat on the back from S&P, could Ford (http://autoblog.com/make/ford/) be next? Looks like it. The ratings agency announced that The Blue Oval will be considered for an upgrade once the company completes its UAW contract talks. S&P currently has Ford rated at BB-.GM earns higher credit rating with new labor deal (http://www.autoblog.com/2011/10/03/gm-earns-higher-credit-rating-with-new-labor-deal/) originally appeared on Autoblog (http://www.autoblog.com) on Mon, 03 Oct 2011 10:31:00 EST. Please see our terms for use of feeds (http://www.weblogsinc.com/feed-terms/).
Permalink (http://www.autoblog.com/2011/10/03/gm-earns-higher-credit-rating-with-new-labor-deal/) | Email this (http://www.autoblog.com/forward/20071907/) | Comments (http://www.autoblog.com/2011/10/03/gm-earns-higher-credit-rating-with-new-labor-deal/#comments)
More... (http://www.autoblog.com/2011/10/03/gm-earns-higher-credit-rating-with-new-labor-deal/)