S&P cuts GMAC, ResCap

Standard & Poor's said it lowered selected ratings on GMAC LLC and its subsidiary Residential Capital LLC, including lowering the long-term counterparty credit rating to SD (selective default) from CC for both entities.

The ratings were removed from Creditwatch, where they were placed with negative implications on Nov. 20, the agency said.

According to S&P, this action follows the company's completion of an exchange offer for certain bonds of both GMAC and Residential Capital that, for the reasons cited below, is characterized pursuant to its criteria as a distressed debt exchange.

"The downgrade reflects the fact that the exchange offer paid less than face value to certain bondholders and left untendered bonds in a subordinated position to the new notes," said S&P credit analyst John K. Bartko.

© 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.