Recalls at GM shouldn't affect ratings says Fitch

|By:, SA News Editor

"We believe the company's cash flow and cash position will allow it to weather these challenges," says Fitch, noting the total estimated cost of the recalls of $1.3B compares to $38B in year-end liquidity. "However, over the long run, the recall may result in reputational damage that could result in a sales decline."

General Motors (GM -3.5%) currently has a BB+ rating with positive outlook at Fitch.

GM's decline today puts it 21% lower YTD and near its lowest price in a year.