Dallas, Texas 09/24/2013 (Financialstrend) – On Monday, Moody’s the credit-rating agency upgraded General Motors Company (NYSE:GM) out of its junk-bond status. This is the 1st time in 8 years that the agency has done this. This milestone was an important one as far as its comeback from bailout and bankruptcy was concerned.
General Motors Company (NYSE:GM) is the largest automaker in the United States. The fact that its debt has been moved from a junk status to an “investment-grade” status means that now the company’s ability to repay its debt is considerably stronger.
There is a distinct possibility that its borrowing-costs will reduce and it will now have a better rating.
Moody’s said that this upgrade essentially took place since there had been steady-improvement in the company’s operations as well as in its finances. It was now the top car-seller in China which is the biggest car market in the world. The agency also noted the company’s strong product line. The fact that the auto market in the U.S was on the rebound was another contributing factor in this rating upgrade.
In 2005 May, General Motors Company (NYSE:GM) had been downgraded to junk-bond status and it was reeling from dwindling cash reserves after suffering losses for numerous years. The company’s bankruptcy and bailout from the Fed came 4 years post that downgrade.
In Monday’s trading General Motors Company (NYSE:GM) stock climbed by 0.81%. The shares opened at a price of $37.15 which rose to an intraday high of $37.50 and dropped to a close of $37.13. Around 18.48M shares were traded in Monday’s session. An average-volume of 13.17M shares was traded over 30 days. The shares have a 52-week low of $22.67 and their 52-week high stands at $37.88. General Motors Company (NYSE:GM)’s market capitalization is $55.11 billion.