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GM, GMAC 'A-' SENIOR DEBT AFFIRMED BY FITCH AFTER PENSION PROPOSAL -- FITCH FINANCIAL WIRE --

 NEW YORK, Nov. 16 /PRNewswire/ -- General Motors Corp.'s 'A-' senior debt and 'BBB+' preference shares are affirmed by Fitch. General Motors Acceptance Corp.'s 'A-' senior debt and 'F-1' commercial paper also are affirmed, as is Electronic Data Systems Corp.'s 'F-1' commercial paper. GM's credit trend is improving, while GMAC's is stable.
 GM proposes to contribute 185 million GM class E common stock to its U.S. hourly pension plan. The current market value of these shares is about $5.7 billion. This contribution, which is subject to various regulatory approvals, is incremental to the near-term contributions GM is making to the fund.
 Fitch views this action as positive for GM, in that it represents a substantial attack on the company's estimated $24 billion pension liability, and underscores the company's commitment to fund the shortfall as expeditiously as possible.
 GM has already demonstrated some progress in containing this liability. The pension fund's fiscal 1993 investment performance exceeded its 10% rate of return assumption, and GM contributed over $4 billion to the pension plan to date in 1993, more than double the ERISA minimum.
 Pension funding concerns are somewhat mitigated by GM's improving operating and financial performance in North America. Cash and cash flow have improved substantially, debt has stabilized, and GM has not tapped the capital markets since November 1992. Over the near term, GM should continue to downsize its cost structure, which, combined with U.S. automotive replacement demand and new product flow, should support cash flow to fund capital programs and pension liabilities.
 Longer term, remaining concerns center around the cyclical nature of the auto business, GM's new product success, and the company's ability to deal with the competitive disadvantages posed by a tough labor contract and escalating pension and health care costs.
 -0- 11/16/93
 /CONTACT: Mary Anne Sudol, CFA, 212-908-0562, or Nancy E. Stroker, CFA, 212-908-0533, both of Fitch/
 (GM)


CO: General Motors Corp. ST: Michigan IN: AUT SU: RTG

SH -- NY079 -- 5176 11/16/93 14:55 EST
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Publication:PR Newswire
Date:Nov 16, 1993
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