GM's Debt Upgraded Out of Junk Bond Status

Important victory

General Motors' debt was upgraded out of junk bond status for the first time in more than eight years. It was an important milepost in its recovery from bankruptcy and bailout.

Credit rating agency Moody's on Monday upgraded the largest U.S. automaker's debt from junk to investment grade status. Effectively, it means that GM's ability to repay debt is stronger. The company's borrowing costs will likely be lower with a better rating.