Moody's may cut GMAC Mexican units

Moody's de Mexico said it put on review for downgrade the Aaa.mx long-term national scale debt ratings assigned to GMAC Mexicana SA de CV SOFOL and GMAC Financiera SA de CV SOFOL, respectively.

At the same time, Moody's affirmed the short-term national scale debt rating of MX-1 assigned to both companies.

This rating action follows a similar action taken on parent General Motors Acceptance Corp. GMAC Mexicana and GMAC Financiera's debt ratings are based on irrevocable and unconditional guarantees provided by GMAC.

Moody's said the rating action on GMAC reflects the significant business ties between GM (rated Baa2 on review for downgrade) and GMAC that influence GMAC's origination volumes, asset mix and asset quality.

Moody's noted that under the GMAC umbrella, GMAC Mexicana and GMAC Financiera replicate its parent's business model in the Mexican local market. Each of GMAC's Mexican subsidiaries maintains a sound financial standing in terms of asset quality and profitability, which enables them to face the highly competitive environment.

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