General Motors 2010 Annual Report Download - page 86

GENERAL MOTORS COMPANY AND SUBSIDIARIES
DBRS, Moody’s, Fitch, and S&P currently rate our corporate credit at non-investment grade. The following table summarizes our
credit ratings at February 15, 2011:
Rating Agency Corporate
Secured Revolving
Credit Facility
Senior
Unsecured Outlook
DBRS ............... BB BBB(low) N/A Stable
Fitch ................. BB- BB+ N/A Stable
Moody’s .............. Ba2 Baa3 N/A Stable
S&P ................. BB- BB+ N/A Positive
Rating actions taken by each of the credit rating agencies from October 6, 2010 through February 15, 2011 were as follows:
DBRS: October 2010 — Assigned an initial Corporate rating of BB and a rating of BBB (low) to our secured revolving credit
facility.
Fitch: October 2010 — Assigned an initial Corporate rating of BB- (affirmed in November 2010) and a rating of BB+ to our
secured revolving credit facility.
Moody’s: October 2010 — Assigned an initial Corporate rating of Ba2 and assigned a rating of Baa3 to our secured revolving
credit facility.
S&P: October 2010 — Assigned an initial Corporate rating of BB- and a rating of BB+ to our secured revolving credit facility.
February 2011 — Outlook revised to positive from stable.
The initial ratings assigned by the agencies are an important step towards our objective to attain an investment grade credit rating
over the long-term by maintaining a strong balance sheet and reducing financial leverage.
Series A Preferred Stock
Beginning December 31, 2014 we will be permitted to redeem, in whole or in part, the shares of Series A Preferred Stock
outstanding, at a redemption price per share equal to $25.00 per share plus any accrued and unpaid dividends, subject to limited
exceptions. As a practical matter, our ability to redeem any portion of this $6.9 billion face amount in Series A Preferred Stock will
depend upon our having sufficient liquidity.
Automotive Financing
Liquidity Overview
GM Financial’s primary sources of cash are finance charge income, servicing fees, distributions from securitization trusts,
borrowings under credit facilities, transfers of finance receivables to trusts in securitization transactions and collections, recoveries on
finance receivables and net proceeds from senior notes and convertible senior notes transactions. GM Financial’s primary uses of cash
are purchases of finance receivables, repayment of credit facilities, securitization notes payable and other indebtedness, funding credit
enhancement requirements for securitization transactions and credit facilities, repurchases of unsecured debt and operating expenses.
GM Financial used cash of $0.9 billion for the purchase of finance receivables in the three months ended December 31, 2010.
Generally, these purchases are funded initially utilizing cash and borrowings under credit facilities and subsequently funded in
securitization transactions.
84 General Motors Company 2010 Annual Report