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GENERAL MOTORS $1.0 BILLION 9.125 PERCENT PREFERENCE STOCK RATED 'A+' BY FITCH -- FITCH FINANCIAL WIRE --

GENERAL MOTORS $1.0 BILLION 9.125 PERCENT PREFERENCE STOCK RATED 'A+' BY
 FITCH -- FITCH FINANCIAL WIRE --
 NEW YORK, Dec. 6 /PRNewswire/ -- General Motors Corp.'s new issue of $1.0 billion 9.125 percent Series B Preference Stock is rated "A+" by Fitch. The "AA-" senior debt ratings for GM and General Motors Acceptance Corp., and GMAC's "F-1+" commercial paper remain on FitchAlert with negative implications. Should GM's senior debt rating be lowered, the rating on the Preference Stock would not be expected to fall outside the "A" category.
 Proceeds of this offering, together with GM's cash conservation and cost reduction efforts, will support important product spending in the face of reduced cash flows.
 GM's losses have been greater than expected, caused primarily by a combination of persistently weak U.S. economic and auto market conditions and the company's still relatively high cost structure. A U.S. economic recovery will not likely begin until well into 1992, putting further stress on the company's financial position and fundamental credit quality.
 GM continues to implement substantial cash conservation, capital raising, and operating actions to mitigate these pressures and to ensure its forward profitability. Its market shares remain firm worldwide, supported by a robust new product flow.
 While restoring profitability in its U.S. automotive operations may take some years, enterprise earnings enjoy support from other key earnings sources: European automotive operations, GMAC, EDS, and GM Hughes Electronics.
 -0- 12/6/91
 /CONTACT: Mary Anne Sudol of Fitch, 212-908-0562/
 (GM) CO: General Motors Corp. ST: Michigan IN: AUT SU: RTG


SH -- NY016 -- 0022 12/06/91 10:21 EST
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Publication:PR Newswire
Date:Dec 6, 1991
Words:267
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