S&P: General Motors still on watch

Standard & Poor's said its ratings on General Motors Corp. (GM), General Motors Acceptance Corp. (GMAC) and all related entities, including GMACs subsidiary, Residential Capital Corp. (ResCap) remain on CreditWatch, where they were placed on Oct. 3.

This CreditWatch update follows GM's announcement today of further capacity and headcount reductions in North America, the agency said.

GM's BB- long-term and B-2 short-term ratings are on CreditWatch with negative implications. GMACs BB/B-1 ratings and ResCap's BBB-/A-3 ratings are on CreditWatch with developing implications, S&P added.

The CreditWatch listing on GM reflects concerns, S&P said, on the recent precipitous deterioration in GM's product mix in North America and ongoing decline in its market share.

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