General Motors' plans to return billions to shareholders seem to have changed little
General Motors' plans to return billions to shareholders seem to have changed little about the company's overall financial picture, per the three major credit rating agencies. Fitch maintains its rating, as it expects GM to keep its automotive cash near or above the previous $18 billion target, with enough flexibility in the case of a downturn.
Moody's says the move is credit-negative, but the agency does not believe it signals a shift in overall financial policy, and therefore GM's ratings and outlook are "unaffected." S&P Global says the company will have enough positive cash flow to handle investments in electrification and other technology, "therefore, all of our ratings on GM are unchanged," S&P says
GM expects to generate operating profit of $11.7 billion to $12.7 billion this year, which is slightly lower than its previous forecast. GM also expects to generate free cash flow of $10.5 billion to $11.5 billion this year, higher than a previous forecast.
Moody's says the move is credit-negative, but the agency does not believe it signals a shift in overall financial policy, and therefore GM's ratings and outlook are "unaffected." S&P Global says the company will have enough positive cash flow to handle investments in electrification and other technology, "therefore, all of our ratings on GM are unchanged," S&P says
GM expects to generate operating profit of $11.7 billion to $12.7 billion this year, which is slightly lower than its previous forecast. GM also expects to generate free cash flow of $10.5 billion to $11.5 billion this year, higher than a previous forecast.
