Moody’s bumps GM to investment grade

General Motors’ stock got a major boost this week to go along with the company’s growing sales as Moody’s Investors Service bumped its rating of the automaker’s stock to investment grade.

Moody’s announced on Monday that it has moved GM’s stock from Ba1 to Baa3 – the investment firm’s lowest investment grade. GM’s stock hasn’t been listed as investment grade since 2005.

“Good things happen when you build great cars and trucks and deliver strong financial results,” GM CEO Dan Akerson said in a statement. “Today’s news from Moody’s further underscores that this is exactly what we are doing today.”

Moody’s cited GM’s “steadily improving operational and financial trajectory” for its improved rating of the stock.

“We think that the disciplines the company has embraced, combined with the strength of its U.S. product portfolio and a healthy domestic market, will enable it to stay on that path,” Bruce Clark, a senior vice president at Moody’s, said, according to Automotive News.

The news follows GM’s announcement that it has agreed to buy back 120 million shares from the UAW’s retiree health care fund. That move will cost GM an estimated $3.2 billion.

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