GM earns credit rating upgrade rating from S&P

General Motors' credit record earned an thumbs up from Standard & Poor's Thursday even as it stock slipped below the $33 price of its initial post-bankruptcy offer nearly four years ago.

The credit agency today raised the company's rating from BB+ to BBB-. It comes a year after Moody's raised GM's rating to investment grade. That leaves Fitch as the only major ratings agency that has not given GM an investment-grade rating.

From a practical perspective, higher credit ratings eventually reduce a company's borrowing costs.

The good news is welcome coming in a year when GM has recalled nearly 30 million vehicles worldwide and faced legal, regulatory and political fire for its handling of defective ignition switches that have been linked to more than 20 deaths, reduced earnings and resulted in a $35 million fine by the National Highway Traffic Safety Administration.

S&P's move also underscores GM's return to sustained profitability, bolstered by a strong sales in North America and China.

Still, investors have punished GM's stock in the midst of a broader downturn on Wall Street in recent days. GM's stock price fell 2% Thursday to close at $32.87. The last time the shares closed below $33 was April 14.

S&P said GM's credit outlook is stable. It also raised the rating for the rating for the company's GM Financial unit to investment grade.

"Delivering segment-leading vehicles, improving the efficiency of our operations and building a fortress balance sheet made this upgrade possible," GM CEO Mary Barra said in a statement. "While we are not yet satisfied, I am confident that our renewed focus on our customers will drive even stronger business results."

Contact Nathan Bomey: 313-223-4743 or nbomey@freepress.com. Follow him on Twitter @NathanBomey.