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GENERAL MOTORS $300 MILLION 7 PERCENT NOTES DUE 2003 RATED 'A-' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, June 15 /PRNewswire/ -- General Motors Corp.'s $300 million of 7 percent notes due 2003 are rated 'A-' by Fitch. The company's outstanding $8.3 billion 'A-' senior debt and approximately $4.7 billion 'BBB+' preference shares are affirmed. The notes were sold pursuant to GM's Rule 415 shelf registration. Proceeds will be used for general corporate purposes. GM's credit trend remains improving.
 Current ratings are based on tangible evidence of GM's operating and financial progress. North American operations were profitable in the last two reported quarters, and GM's cash balances and cash flow have improved substantially. These developments mitigate some of the concerns related to recent pension liability disclosures and earnings pressures in GM's important European markets.
 Looking ahead, GM's challenges are several: new product success, maintaining momentum in its non-automotive operations, and restoring a balance sheet ravaged by losses and accounting charges. In addition, GM must negotiate a new labor contract this year. GM clearly cannot afford another labor contract such as the present one, indicating that negotiations this year will be tough and could be further complicated by the Clinton Administration's health-care reform proposals. Expensive pension costs, combined with escalating health-care inflation, continue to underscore the issue of GM's competitive disadvantage.
 -0- 6/15/93
 /CONTACT: Mary Anne Sudol, CFA, 212-908-0562, (GM), or Nancy E. Stroker, CFA, 212-908-0533, (GMAC), both of Fitch/
 (GM)


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

LR -- NY032 -- 2043 06/15/93 10:39 EDT
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Publication:PR Newswire
Date:Jun 15, 1993
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