DBRS upgrades General Motors Financial

DBRS said it upgraded the issuer and senior unsecured debt rating of General Motors Financial Co., Inc. to BBB from BBB (low) and short-term instruments rating to R-2 (middle) from R-3.

The guaranteed senior unsecured notes rating of General Motors Financial Co. of Canada, Ltd. were upgraded to BBB from BBB (low), reflecting the guarantee from General Motors Financial.

The trend is stable.

This upgrades follow the upgrade of General Motors Co., DBRS said.

The ratings reflect the ownership of the company and a view that General Motors Financial is a strategic subsidiary of General Motors, supporting the parent company’s new vehicle sales by providing financing to General Motors customers and dealers, the agency said.

The ratings also consider the support agreement between General Motors Financial and General Motors that requires the company to make a capital contribution should the company’s leverage ratio exceed certain established levels, DBRS said.

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