Fitch downgrades GMAC

Fitch Ratings said it downgraded GMAC LLC's issuer default rating to Restricted Default following completion of the company's bond exchange.

The exchange covered $28.8 billion par value of unsecured institutional debt, which Fitch said it considers as a distressed debt exchange.

Subsequent to this action, Fitch said it placed GMAC's and Residential Capital LLC's issuer default ratings on Rating Watch positive.

The possible upgrade reflects the fact that, with the bond exchange and capital infusions from both the company's ownership and U.S. Treasury, GMAC has strengthened its financial profile and is now eligible to apply for the FDIC's Temporary Liquidity Guarantee Program, the agency noted.

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