Moody's: GM Could Return to Investment Grade in Year

Ratings agency Moody's Investors Service says General Motors Co. "remains on track" to regain an investment-grade credit rating within the next 12 months.

Moody's cites the company's improved cost structure, new products, competitive business in North America and strong position in China.

The agency left its rating of GM rating unchanged at Ba1, one step below investment grade, but with a positive outlook. Fitch Ratings and Standard & Poor's Ratings Service give GM an equivalent rating.

S&P said last week that GM needs to successfully restructure its money-losing European unit to regain investment-grade status. The carmaker slid into junk-bond territory in 2005.