In today's video, industrials editor and analyst Brendan Byrnes discusses Fitch's recent upgrade of GM's credit to BB+, which is just below investment grade. While not a huge deal right now (getting to investment grade is the big one), the upgrade shows that GM continues to make progress. GM is solidly profitable, with over $32 billion cash in the bank, and has been steadily improving its vehicle lineup. The stock looks cheap, trading around five times forward earnings, and GM's deal with workers in Germany is a good first step in cutting costs in Europe. Check out the video below for more on the upgrade and GM.
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The article A Sign of Progress for This Automaker originally appeared on Fool.com.
Austin Smith owns shares of Ford. Brendan Byrnes owns shares of Ford and General Motors. The Motley Fool owns shares of Ford. Motley Fool newsletter services recommend Ford and General Motors. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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