The ratings agency Standard and Poor’s upgraded Thursday note of American automaker General Motors (GM) to “BB +” to “BBB” because of its strong financial position, despite the operations vehicle recalls.
The rating agency Standard and Poor’s raised the rating Thursday the American automaker General Motors (GM) to “BB +” to “BBB” due to its strong financial position and operations despite vehicle recalls.
The outlook assigned to the rating is stable because the “diversification opportunities profits are improving due to restructuring initiated and best sales in Europe, which should allow for greater profitability in this region, “said SP.
This decision allows especially GM out of the category” speculative investment “to return to the investment considered solid.
GM was saved from bankruptcy in 2009 thanks to a bailout of $ 49.5 billion funded by the federal government. The group has since regained its independence and repaid the government aid which it had enjoyed.
The agency also points out that profits are strong and growing in China.
The note also changes to “BBB” with a stable outlook for the financial division of General group Motors Financial.
SP recalls however that the operations of high-profile recalls the group remain a “negative factor” but that “spending on reminders should be manageable thanks to the strong liquidity of the group.”
GM recalled about 29 million vehicles in total and recorded expenses of $ 2.5 billion for these operations to correct defects in these vehicles. GM admitted that accidents related to some of these defects had a total of 21 victims recognized to date and set up a compensation fund.
SP also believes that GM should maintain its first position the North American market with margins approaching 10% (excluding transaction costs of recall). “In our opinion, the biggest risk factor, that is to say, the impact on the reputation of GM, has not materialized,” said SP.
Finally, China The manufacturer continues to generate significant sources of liquidity through its joint ventures in that country and a market share of up to 14%, although it has shown a slight decline over the past six months, says SP.
A director of GM China had said Wednesday that the manufacturer was “on-track to exceed 3 million vehicles sold, for the second consecutive year.”
“We expect beyond the record sales recorded last year, to 3.16 million units, “said Matthew Tsien, president of GM China, at a press conference.
No comments:
Post a Comment