Fitch Affirms General Motors And GMAC's `A' Debt Ratings

    CHICAGO--April 20, 2001--Fitch has affirmed the debt ratings of General Motors Corporation (GM) and its' financial services subsidiary, General Motors Acceptance Corp.(GMAC). The unsecured senior debt rating for GM, GMAC and their guaranteed foreign subsidiaries is `A', and the commercial paper rating is `F1'. Also, Fitch has withdrawn the `A-` preferred securities rating for GM and for General Motors Capital Trust G since GM redeemed all Series G preferred securities earlier this month. In total, approximately $146 billion of debt securities are affected by this action. The Rating Outlook is Stable.
    With its success in reducing dealer inventories during the first quarter, Fitch expects GM's margins in North America to return to higher levels as 2001 progresses, bolstered by product initiatives in important segments such as mid-size and large sport-utility vehicles. The competitive weakening of the Opel brand in Europe in 2000 is a concern, but Fitch is encouraged by the initial improvement in the first quarter and expects that cost and product initiatives will push GM back to profitability over the next year or so. However, GM's automotive cash reserves have fallen substantially below management's $13 billion target that the ratings have previously assumed GM would keep as cyclical protection, so any missteps in the execution of the aforementioned initiatives may push the Rating Outlook Negative. Also, the ratings anticipate that GM will continue to improve GMAC's capitalization.