Fitch Ratings has upgraded the long-term issuer default ratings for General Motors Financial Co. Inc. and its parent company General Motors Co. to BBB from BBB-.
Fitch also upgraded General Motors Financial's short-term issuer default rating to F2 from F3 and upgraded Opel Bank GmbH's senior unsecured debt rating to BBB from BBB-.
The outlook is stable.
The upgrade of General Motors is due to improvement in the company's credit profile, resulting from better product profitability and the maintenance of a relatively conservative balance sheet, Fitch said. The rating agency expects the company to maintain a relatively strong liquidity position to guard against a downturn while keeping leverage near the low end of its peers.
General Motors Financial's ratings are linked to General Motors and will move in tandem with its parent. The upgrade of General Motors Financial's short-term issuer default rating reflects potential liquidity support available from the parent as well as General Motors Financial's good stand-alone liquidity profile, Fitch stated.