General Motors Co.'s record $26 billion pension terminationfalls short of improving the largest U.S. automaker's financesenough to let it join Ford Motor Co. as an investment-grademarque.
While transferring some retirement obligations to a PrudentialFinance Inc. unit will remove liabilities from Detroit-based GM'sbooks, the use of as much as $4.5 billion of its own cash “willbalance out” the benefits, Moody's Investors Service said in areport yesterday.
“The transaction is too small,” Colin Langan, an analyst at UBSInc.'s investment-banking unit in New York, wrote in a note toinvestors yesterday. Even after the pension shift, GM's “obligationwould still be larger than any company within the S&P 500.”
Continue Reading for Free
Register and gain access to:
- Thought leadership on regulatory changes, economic trends, corporate success stories, and tactical solutions for treasurers, CFOs, risk managers, controllers, and other finance professionals
- Informative weekly newsletter featuring news, analysis, real-world cas studies, and other critical content
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the employee benefits and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
*May exclude premium content
Already have an account?
Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
