Moody's affirms GMAC

Moody's Investors Service said it affirmed its Baa1 long-term and prime-2 short-term ratings on General Motors Acceptance Corp. and its supported subsidiaries.

This follows GMAC's announcement that it is considering forming a subsidiary holding company for its residential mortgage businesses, according to Moody's.

Moody's said its rating action is based upon its current understanding of the contemplated restructuring and GMAC management's intent to not disadvantage current and future GMAC bondholders as a result of this transaction.

Moody's said that the formation of the new company would increase GMAC's financial flexibility.

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