GM Investment Rating Should Improve, CEO Says
The car company's rating dropped to "junk bond" status in 2005.
Dan Akerson, General Motors CEO, said that he foresees GM's return to an investment-grade rating, FoxBusiness.com reported Wednesday. Akerson said that he hoped to see the company earn an "A" rating, considered medium credit quality, by the middle of the decade. The improved rating would mean lower interest rates for the company.
GM dropped to a "junk bond," below investment-grade rating in 2005, years before its bankruptcy in 2009.
Bond rating companies such as Standard & Poor's assign the different designations, ranging from "AAA" (high quality) to "CCC" (low quality, or junk bonds), according to Investopedia.com
Akerson said that he expected increased sales in 2013, as the company rolls out 13 new or "refreshed" models in the U.S. No new plants are in the works for the next two years, he said.