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New Ratings To GM Preferred Stock By Fitch Ratings

 Fitch Ratings has assigned a rating of 'B-' to General Motors Company's (NYSE:GM) new Series B mandatory convertible junior preferred stock that is slated to be issued in conjunction with the initial public offering (NYSEARCA:IPO) of the company's common stock.

The ratings agency gave GM's new Series B mandatory convertible junior preferred stock a rating of "B-."

Fitch also affirmed the issuer default ratings for GM and General Motors Holdings LLC at "BB-," and the secured revolving credit facility rating of "BB+."

As of Sept. 30, the automaker ‘s global defined benefit pension plans were underfunded by $29 billion, including an underfunded position of about $19 billion for the company's U.S. plans, Fitch said.

GM plans to issue 60 million shares of the Series B preferred stock at public offering price of $50 per share, which will result in total proceeds to the company of $2.9 billion after deducting underwriting discounts, commissions and other offering expenses.

The downgrade resolves the Rating Watch Negative status for SRE. Fitch placed SRE and its subsidiaries on Rating Watch Negative Feb. 2, 2010 due to the pending sale of its commodities trading and marketing business.

Management strategy is focused on investment in the core California-based utility businesses and unregulated and regulated natural gas infrastructure. Fitch calculates that approximately 70% of estimated 2010 - 2014 capex will be invested in the utility with the remainder natural gas infrastructure.

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Disclosure: "No Positions"