S&P Raises GM, GM Financial to Investment Grade

Standard & Poor's Ratings Services has elevated its credit ratings for General Motors Co. and the carmaker's GM Financial lending unit to investment grade.

S&P raised its rating for GM from BB+, its highest speculative grade, to BBB-, its lowest investment grade. GM Financial improved from BB to BBB-.

The rating service dropped its GM rating to speculative in May 2005. S&P says it has now restored the company to investment-grade status based on the outlook for strong results in North America and China and the prospects of GM restoring profitability for its European operations in the next year or two.

GM joins Ford Motor Co., which regained its investment rating from S&P last year. Moody's Investors Service upgraded GM and Ford to investment grade one and two years ago, respectively.