NEW YORK, June 20 (Reuters) - Moody's Investors Service on Friday affirmed its ratings on General Motors Corp. following news that the automaker will sell about $13 billion in debt and convertible securities to help shore up its underfunded pension plan and meet healthcare obligations.
Moody's affirmed GM's long-term rating of "Baa1," its third-lowest investment grade, and its "Prime-2" short-term ratings. It also affirmed an "A3" long-term rating, its fourth-lowest, and "Prime-2" short-term ratings on GM's finance unit. The rating outlook remains negative.
"The transaction proposed by GM has both modestly negative and positive implications for its liquidity and financial flexibility, but it will not, on balance, materially change the long-term cash generation, operating, or credit profile of the company," Moody's said.