Moody's says General Motors' $10 billion accelerated share repurchase program is credit negative but does not signal a change in financial policy, ratings unaffected
Moody's Investors Service (Moody's) said that the $10 billion accelerated share repurchase program announced by General Motors Company (Baa2 stable) is credit negative, because it results in an upfront cash payment of $10 billion, to be funded from available cash. General Motors' cash and marketable...General Motors designs, builds and sells trucks, crossovers, cars and automobile parts. The company also provides automotive financing services through its subsidiary, General Motors Financial Company, Inc. (GM Financial). GM Financial provides retail loan and lease lending across the credit spectrum. GM Financial provides commercial lending products to dealers including new and used vehicle inventory floorplan financing and dealer loans, which are loans to finance improvements to dealership facilities, to provide working capital, and to purchase and/or finance dealership real estate. Other commercial lending products include financing for parts and accessories, dealer fleets and storage centers.
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