S&P lifts GMAC, ResCap

Standard & Poor's said it raised the counterparty credit rating on GMAC LLC and its 100% owned subsidiary Residential Capital LLC to CCC/C from SD.

All debt that was not part of the exchange offers was upgraded to CCC from CC and removed from CreditWatch negative.

The outlook is negative.

S&P said it rated new senior notes, both guaranteed and unguaranteed, CCC, the new subordinated issuance CC and new preferreds C.

The agency rated ResCap's senior secured second-lien notes CCC with 3 recovery rating, its subordinated third-lien notes CC with 6 recovery rating and unsecured debt CC with 6 recovery rating.

"Our reassessment follows the companies' fourth-quarter earnings release that indicates continued intense financial stress at both entities," S&P analyst John K. Bartko said in a statement.

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