General Motors 2013 Annual Report Download - page 41

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GENERAL MOTORS COMPANY AND SUBSIDIARIES
plan in March 2013; voluntary contributions to the U.S. salaried pension plan of $2.3 billion for the purchase of annuity contracts and
the premium paid to purchase our common stock from the UST of $0.4 billion in December 2012; termination of in-transit wholesale
advance agreement in GMNA resulting in an increase to accounts receivable of $1.1 billion and OPEB payments relating to the HCT
settlement of $0.8 billion in 2011.
Status of Credit Ratings
We receive ratings from four independent credit rating agencies: DBRS Limited, Fitch Ratings (Fitch), Moody’s Investor Service
(Moody’s) and S&P. DBRS Limited and Moody’s currently rate our corporate credit at investment grade while Fitch and S&P
currently rate our corporate credit at non-investment grade. The following table summarizes our credit ratings at January 30, 2014:
Corporate
Secured Revolving
Credit Facilities Senior Unsecured Outlook
DBRS Limited ......... BBB(low) N/A N/A Stable
Fitch ................. BB+ BBB- BB+ Positive
Moody’s .............. Investment Grade Baa2 Ba1 Stable
S&P ................. BB+ BBB BB+ Positive
Rating actions taken by each of the credit rating agencies from January 1, 2013 through January 30, 2014 were as follows:
Fitch: September — Assigned a senior unsecured rating of BB+. August — Upgraded their outlook to positive from stable.
Moody’s: September — Upgraded corporate rating to an investment grade rating of Baa3 from Ba1, assigned a senior unsecured
rating of Ba1 and changed their outlook to stable from positive.
S&P: September — Assigned a senior unsecured rating of BB+ and upgraded their outlook to positive from stable.
We continue to pursue investment grade status from all of the credit rating agencies by maintaining a balance sheet with minimal
financial leverage and demonstrating continued operating performance. Achieving investment grade status will provide us with
greater financial flexibility, lower our cost of borrowing and may release collateral from certain agreements including our secured
revolving credit facility.
Automotive Financing — GM Financial
Liquidity Overview
GM Financial’s primary sources of cash are finance charge income, leasing income, servicing fees, net distributions from secured
debt, borrowings under secured and unsecured debt, net proceeds from senior notes transactions and collections and recoveries on
finance receivables. GM Financial’s primary uses of cash are purchases of finance receivables and leased vehicles, funding of
commercial finance receivables, business acquisitions, repayment of secured and unsecured debt, funding credit enhancement
requirements for secured debt, operating expenses and interest costs. GM Financial continues to monitor and evaluate opportunities to
optimize its liquidity position and the mix of its debt.
Available Liquidity
The following table summarizes GM Financial’s available liquidity for daily operations (dollars in millions):
December 31, 2013 December 31, 2012
Cash and cash equivalents ......................................................... $ 1,074 $ 1,289
Borrowing capacity on unpledged eligible assets ....................................... 1,650 1,349
Borrowing capacity on committed unsecured lines of credit .............................. 615 —
Available liquidity ............................................................... $ 3,339 $ 2,638
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