DBRS lifts GM Financial to BBB (low)

DBRS said it upgraded the issuer and long-term debt rating of General Motors Financial Co., Inc. to BBB (low) from BB (high).

Concurrently, the agency upgraded GM Financial’s short-term instruments rating to R-3 from R-4. The guaranteed senior unsecured notes rating of General Motors Financial Co. of Canada, Ltd were also upgraded to BBB (low) reflecting the guarantee from GM Financial.

The trend on all ratings is stable.

As a result of this action, the ratings of GM Financial’s are now equalized with those of its parent, General Motors Co. (GM).

DBRS said the action follows the announcement that GM and GM Financial entered into a formal support agreement. The equalization of the ratings reflects the strategic importance of GM Financial to GM reflected in the level of capital and liquidity support provided for in the support agreement to GM Financial by GM as well as actual support provided by GM to GM Financial to date.

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