Moody’s Returns GM to Investment Grade

Moody's Investors Service has raised its primary rating for General Motor Co. to Baa3, with a stable outlook. The upgrade gives GM its first investment grade rating since 2005.

Moody's cites expectations that the company's competitive position and financial health will continue to improve because of a healthy America auto market, good U.S. product portfolio, new product introductions and a strong position in China.

The rating service also expects GM to boost margins in North America. According to Moody's, the company's liquidity at mid-year was about $31 billion: $24 billion in cash and $7 billion in committed credit facilities. The service estimates that GM will need about $7.7 billion in cash over the next 12 months.