S&P affirms GMAC

Standard & Poor's said it affirmed its BB+/B-1 counterparty credit rating on GMAC LLC.

The outlook was revised to negative from developing.

At the same time, the agency said it lowered its counterparty credit rating on the company's 100%-owned subsidiary, Residential Cap LLC, to BBB-/A-3 from BBB/A-3. The outlook is stable.

S&P noted that the ratings on GMAC continue to reflect the benefits afforded by the diversity of its mortgage and insurance businesses, its generally high asset quality and its significant long-range profit potential while the ratings also reflect the risks facing GMAC because of its close business ties to General Motors Corp. (B/negative/B-3), notwithstanding the completion of a transaction on Nov. 30, whereby GM sold a 51% stake in GMAC to a consortium headed by Cerberus Capital Management LP.

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