Fitch cuts GM, subsidiaries

Fitch Ratings said it downgraded the senior unsecured debt of General Motors Corp. and its financial services subsidiary General Motors Acceptance Corp. and related entities to BBB from BBB+. Fitch affirmed the corresponding commercial paper ratings at F2.

The outlook is negative.

Fitch downgraded to BBB from BBB+ the senior debt of General Motors, General Motors of Canada Ltd., GMAC, General Motors Acceptance Corp. of Canada, GMAC Australia (Finance) Ltd., GMAC International Finance BV, General Motors Acceptance Corp. Nederland NV, Opel Bank GmbH, GMAC Bank GmbH, GMAC Bank, General Motors Acceptance Corp. (NZ) Ltd., GMAC Commercial Mortgage Bank plc, GMAC Commercial Mortgage Japan KK and affirmed at F2 the commercial paper of General Motors, General Motors of Canada Ltd., GMAC, General Motors Acceptance Corp. (UK) Finance plc, the F2 short-term rating of Opel Bank GmbH, GMAC Bank GmbH and GMAC Bank, the F2 euro commercial paper and short-term deposits ratings of GMAC Commercial Mortgage Bank plc, F2 commercial paper rating of General Motors Acceptance Corp. (NZ) Ltd. and F2 short-term rating of GMAC Commercial Mortgage Japan KK.

Fitch said the downgrade and outlook reflects margin compression in the United States and Europe that is likely to continue over the near term, the near-term competitive position of the company's truck portfolio, a car portfolio that remains weak and significant post-employment benefit obligations.

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