Moody's downgrades GMAC

Moody's Investors Service said it downgraded GMAC LLC's long-term issuer rating and senior unsecured debt to Ba3 from Ba2 and its preferred stock to B3 from B1. GMAC subsidiary Residential Capital LLC's ratings were not affected.

This concludes the review for possible downgrade begun on Nov. 26, and the outlook for both GMAC and ResCap is negative.

The agency said the downgrade equalizes the GMAC and ResCap ratings, reflecting Moody's view that, in the near term, GMAC is likely to use its capital resources to support ResCap through its operating and funding difficulties in a manner that could compromise GMAC's standalone credit profile.

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