Moody's cuts GMAC to Caa1

Moody's Investors Service said it downgraded GMAC LLC's long-term senior unsecured ratings to Caa1 from B3 and preferred stock to Ca from Caa3, and continued the review for possible further downgrade.

Other ratings downgraded include GMAC Australia LLC's backed senior unsecured rating to Caa1 from B3, GMAC Bank Gmbh's backed senior unsecured rating to Caa1 from B3, GMAC International Finance BV's backed senior unsecured rating to Caa1 from B3, GMAC, Australia (Finance) Ltd.'s backed senior unsecured rating to Caa1 from B3, General Motors Acceptance Corp. (New Zealand) Ltd.'s backed senior unsecured rating to Caa1 from B3 and General Motors Acceptance Corp. of Canada Ltd.'s backed senior unsecured rating to Caa1 from B3.

The downgrade follows news that GMAC intends to commence an offering to exchange much of its debt for a lower principal amount of new debt, Moody's said.

The offering is in connection with its efforts to raise capital to levels necessary to meet regulatory requirements related to its potential conversion to bank holding company status. Moody's said it believes there is a possibility that GMAC's offering will be a distressed exchange.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.