agent Entrepreneur logo
MenuMENU
SearchSEARCH

General Motors Receives Same Credit Rating Before IPO From Fitch as Ford

October 6, 2010
2 min to read


General Motors Co. was given the same credit rating as Ford Motor Co. from Fitch Ratings, which said the largest U.S. automaker has improved its balance sheet as it plans an initial public offering to pare government stakes, Bloomberg reported.


GM was given an initial BB- issuer default rating, the same as Dearborn, Michigan-based Ford, Fitch said in a statement today. The rating for Detroit-based GM, 61 percent owned by the U.S. government, reflects its “strong liquidity position, low leverage, improved cost structure and increasingly competitive product portfolio,” wrote Stephen Brown, a Fitch analyst.

Ad Loading...


“Although they have similar ratings, you sort of get to them from different paths,” Brown, who is based in Chicago, told Bloomberg in a telephone interview. “GM doesn’t have a whole lot of debt, but they have very large pension obligations. Ford’s pension obligations are significant, but they’re lower than GM’s by quite a bit. But Ford has a lot of debt.”


GM emerged from bankruptcy in July 2009 having received $50 billion in federal aid. GM and the U.S. Treasury aim to hold an $8 billion to $10 billion IPO in November, two people familiar with the plans said last month.


The company’s pension plans were underfunded by $27 billion through 2009, Fitch said. Ford’s pensions were underfunded by about $6.1 billion through last year, down from $16 billion in 2008, Fitch said in an Aug. 6 report. Fitch raised its rating on Ford in that report two steps to BB-, three levels below investment grade.

More Industry

Two dodge cars outside of dealership.
Industryby Lauren LawrenceSeptember 17, 2026

Auto Affordability Inches Up

The latest Cox Automotive and Moody’s Analytics index shows a slight increase in new-vehicle affordability despite high prices.

Read More →
Five men smiling for photo in front of Honda car dealership.
Industryby Lauren LawrenceSeptember 10, 2026

Ohio Auto Group Under New Ownership

After 79 years with the Schluter family, Mansfield Auto Group has been acquired by Missouri-based Clement Auto Group.

Read More →
Blue and white RV parked on beach facing the ocean.
Industryby Lauren LawrenceSeptember 3, 2026

RV Group Expands Carolina Footprint

Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.

Read More →
Ad Loading...
Photo of two men and one woman on a discussion panel
Industryby Hannah MitchellSeptember 1, 2026

Agent Acumen

An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.

Read More →
Gloved hand holding two wrenches next to “Turn Overdue into Opportunity” Graphic
Industryby Lauren LawrenceAugust 27, 2026

Missed Maintenance Creates Opportunity

As families get back on the road and into daily school routines, service drives have an opportunity to capture customers who are behind on recommended vehicle maintenance.

Read More →
Mitsubishi shadow line-up
Industryby Hannah MitchellAugust 25, 2026

Mitsubishi Unveils U.S. Plan

The automaker announced a strategy that includes an expanded lineup and dealership presence, along with more ‘rugged’ and electric models.

Read More →
Ad Loading...
Photo of a laptop, cellphone and eyeglasses on a desk next to an office window
IndustryAugust 24, 2026

Selling to Grow

The question of whether you should sell your agency and if so, when, is up to you. But it’s a question worth asking to ensure you keep the business on the right path for yourself, employees and clients.

Read More →
Mechanic holding a vehicle diagnostic device while standing above an open car hood
Industryby Hannah MitchellAugust 24, 2026

Recalled Vehicles Hit 5-Year High

Though the number of events has fallen so far this year, impacted units are up significantly. Meanwhile, regulators consider consumer notification changes.

Read More →
outside of car dealership with cars parked in front
Industryby Lauren LawrenceAugust 20, 2026

Auto Group Acquires Top-Performing Rooftop

Car Pros sold its Kia Huntington Beach location to Sutherlin Automotive Group, marking the buyer’s third location in Southern California.

Read More →
Ad Loading...
Cars from the rear on a Shanghai freeway
Industryby Hannah MitchellAugust 19, 2026

China as Pacesetter

Automotive leaders huddled on where North America stands in the global picture and how it can strengthen its position against the Asian juggernaut’s surging industry.

Read More →
Ad Loading...