LONDON, June 20 (Reuters) - Credit rating agency Standard & Poor's said on Friday it affirmed its BBB corporate credit ratings on General Motors Corp. and General Motors Acceptance Corp. (GMAC) with a negative outlook.
The rating affirmation follows GM's announcement of a planned debt issuance totalling aproximately $13 billion -- about $10 billion by GM, some portion of which could be in the form of convertible debentures, and approximately $3 billion by GMAC, S&P said in a statement.
"Completion of the proposed financings would significantly bolster GM's liquidity, or enable GM to accelerate contributions to its now massively underfunded pension plans," stated S&P credit analyst Scott Sprinzen.
Still, the benefit to its credit profile is not sufficient to warrant a change in the rating or rating outlook, the agency said.