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GENERAL MOTORS 7.625 PERCENT NOTES DUE 1997 RATED 'A+' BY FITCH -- FITCH FINANCIAL WIRE --

 GENERAL MOTORS 7.625 PERCENT NOTES DUE 1997 RATED 'A+' BY FITCH
 -- FITCH FINANCIAL WIRE --
 NEW YORK, Feb. 18 /PRNewswire/ -- General Motors Corp.'s new issue of $400 million 7.625 percent notes due Feb. 18, 1997, are rated "A+" by Fitch. At the same time, the company announced that it will call at par all of its 7.5 percent notes due Aug. 15, 1993, of which $400 million are outstanding.
 GM is moving forward in implementing a comprehensive plan to restore its North American automotive business to profitability. Those losses have diluted the contribution from GM's profitable operations: international automotive, GMAC, Hughes and EDS. The plan is designed not only to mitigate near-term stresses on GM's overall financial condition but also to strengthen the corporation's underlying competitiveness. An important target is full capacity utilization in North America in 1993, and management has recently indicated that its goal is to have the enterprise achieve breakeven in 1992.
 Key operating elements of the program include actions lowering fixed and variable costs through shedding additional production capacity, reducing the hourly and salaried workforces, achieving further material cost savings, and improving productivity through changes in design and manufacturing processes. Other actions include a $1.1 billion reduction in capital outlays over 1992 and 1993, as well as product strategies designed to support GM's North American market shares.
 While Fitch believes these actions will strengthen GM's long-term creditworthiness, there are several obstacles that could delay the successful execution of cost-reduction actions. These would elongate the interval of stress on the company's financial condition. The key concerns center around lower anticipated market growth in North America as well as political challenges to plant closures, which could delay cost reductions. It is also uncertain whether North American profitability can ultimately be restored to former levels, given keen competition from strong, well-capitalized overseas automakers.
 The credit trend is declining, reflecting Fitch's expectation of weak fundamental performance in 1992, albeit improved from 1991 levels.
 -0- 2/18/92
 /CONTACT: Mary Anne Sudol of Fitch, 212-908-0562/
 (GM) CO: General Motors Corp. ST: Michigan IN: AUT SU: RTG


SH -- NY091 -- 0041 02/18/92 14:50 EST
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Publication:PR Newswire
Date:Feb 18, 1992
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