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GM, GMAC RATINGS AFFIRMED BY FITCH AFTER GMHE ANNOUNCEMENT -- FITCH FINANCIAL WIRE --

 GM, GMAC RATINGS AFFIRMED BY FITCH AFTER GMHE ANNOUNCEMENT
 -- FITCH FINANCIAL WIRE --
 NEW YORK, July 2 /PRNewswire/ -- General Motors Corp.'s (GM) and General Motors Acceptance Corp.'s (GMAC) 'A+' senior debt and GMAC's 'A+' medium-term note ratings are affirmed by Fitch. Also affirmed are the 'F-1' rating on all GMAC commercial paper and demand note programs and the 'A' rating on GM's preference and convertible preference stock.
 The affirmation follows Fitch's positive assessment of the impact of GM Hughes Electronics Corp.'s (GMHE) announcement that it will take an after-tax restructuring charge of $749.4 million to second-quarter earnings. The provision relates to further downsizing of GMHE's defense and aerospace operations, centered in its Hughes Aircraft Co. subsidiary. The majority of the charge covers substantial facilities reduction and rationalization. The second-largest portion of the charge covers the costs of 9,000 additional headcount reductions, which will bring Hughes Aircraft's census to 50,000 people by year-end 1993. The restructuring program will materially lower Hughes's fixed cost structure, and position it as a more effective competitor in its core businesses.
 Fitch views this action as part of GM's comprehensive plan to restore its underperforming businesses, and particularly its North American automotive operations, to profitability.
 The credit trend is declining for both GM and GMAC, reflecting Fitch's expectation of weak fundamental performance in 1992, albeit improved from 1991 levels.
 -0- 7/2/92
 /CONTACT: Mary Anne Sudol of Fitch, 212-908-0562/
 (GM) CO: General Motors Corp.; General Motors Acceptance Corp.;
 GM Hughes Electronics Corp. ST: Michigan IN: AUT SU: RTG


SM -- NY010 -- 6036 07/02/92 09:16 EDT
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Publication:PR Newswire
Date:Jul 2, 1992
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