General Motors 2014 Annual Report Download - page 52

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GENERAL MOTORS COMPANY AND SUBSIDIARIES
Status of Credit Ratings
We receive ratings from four independent credit rating agencies: DBRS Limited, Fitch Ratings (Fitch), Moody’s and S&P. DBRS
Limited, Moody’s and S&P currently rate our corporate credit at investment grade while Fitch currently rates our corporate credit at
non-investment grade. The following table summarizes our credit ratings at January 30, 2015:
Corporate
Revolving Credit
Facilities Senior Unsecured Outlook
DBRS Limited ......... BBB(low) BBB (low) N/A Stable
Fitch ................. BB+ BB+ BB+ Positive
Moody’s .............. Investment Grade Baa3 Ba1 Stable
S&P ................. BBB- BBB- BBB- Stable
Rating actions taken by each of the credit rating agencies from January 1, 2014 through January 30, 2015 were as follows:
DBRS Limited: Assigned revolving credit facilities rating of BBB (low) in October 2014.
Fitch: Assigned a rating of BB+ to our senior unsecured notes issued in November 2014. Assigned revolving credit facilities rating
of BB+ in October 2014.
Moody’s: Assigned a rating of Ba1 to our senior unsecured notes issued in November 2014. Assigned revolving credit facilities
rating of Baa3 in October 2014.
S&P: Assigned a rating of BBB- to our senior unsecured notes issued in November 2014. Assigned revolving credit facilities rating
of BBB- in October 2014. Upgraded our corporate rating and senior unsecured rating to an investment grade rating of BBB- from
BB+ and revised their outlook to Stable from Positive in September 2014.
Improving credit ratings provides us with greater financial flexibility and a lower cost of borrowing. Additionally the collateral
formerly pledged to our revolving credit facilities was released in conjunction with achieving investment grade status from both
Moody’s and S&P.
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, secured and unsecured debt borrowings 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 (dollars in billions):
December 31, 2014 December 31, 2013
Cash and cash equivalents ......................................................... $ 3.0 $ 1.1
Borrowing capacity on unpledged eligible assets ....................................... 4.8 1.6
Borrowing capacity on committed unsecured lines of credit .............................. 0.5 0.6
Available liquidity ............................................................... $ 8.3 $ 3.3
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