Moody's cuts GMAC's Mexico units

Moody's Investors Service said it downgraded to Aa1.mx from Aaa.mx long-term national scale debt ratings assigned to GMAC Mexicana SA de CV Sofol and GMAC Financiera SA de CV Sofol, respectively. The outlook is negative.

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 Moody's downgrade of the long-term ratings of parent General Motors Acceptance Corp. (GMAC) to Baa2 from Baa1. The outlook is negative. Moody's affirmed GMAC's short-term rating at Prime-2.

Moody's said the rating action on GMAC reflects the significant business ties between GM and GMAC that influence GMAC's origination volumes, asset mix, and asset quality. According to Moody's, GMAC continues to display intrinsic credit strengths that are unaffected by the parent company weaknesses, including its resilient earnings base and strong liquidity.

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