GM wants to double its $5 billion revolving credit line. However, the junk credit rated company does not want to pay junk credit interest for it. “We think we can get it priced as if we’re investment grade, which is kind of one of our goals going into 2013, to achieve investment grade,” GM CEO Dan Akerson told Bloomberg yesterday in Sao Paulo.
GM is rated Ba1 by Moody’s and BB+ at Standard & Poor’s, both junk bond ratings, but pretty good ones. Borrowing costs for high-yield, high-risk companies are at the lowest level in decades, and stood at 6.84 percent as of Oct. 18, says Bloomberg. GM wants to pay less.