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S&P bumps up its credit rating on General Motors (GM +1.3%) by two notches, latching on to...

S&P bumps up its credit rating on General Motors (GM +1.3%) by two notches, latching on to the newly ratified contract with the UAW as a driver for profitability and raising its outllook. "GM has a two-year track record of profits and cash flow generation in its global automotive operations, supported by strong performance in North America," notes the ratings agency.
Comments (2)
  • Conventional Wisdumb
    , contributor
    Comments (1802) | Send Message
     
    What about the "screwing" of the old bondholders?

     

    How do you quantify the risk of history repeating itself?
    29 Sep 2011, 12:36 PM Reply Like
  • Mad_Max_A_Million
    , contributor
    Comments (1175) | Send Message
     
    GM had a progressive congress and Prez when they got their free pass. They no longer have the votes to do that again. Instead of a sweetheart deal and TBTF, the next screw-up will leave them Too Irresponsible To Succeed.

     

    GM would need to go to 55 dollars in order to pay off the taxpayer.
    Since their last IPO at 32, they have gone in the wrong direction.

     

    Sort of like buying muni-bonds from Birmingham, Al.
    29 Sep 2011, 01:01 PM Reply Like
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