Moody's cuts GMAC Mexicana

Moody's Investors Service said it downgraded GMAC Mexicana, SA Sofol's long-term Mexican national scale debt rating to Baa3.mx from Baa1.mx, and placed it on review for further downgrade.

The agency also lowered GMAC Mexicana's short-term Mexican national scale debt rating to MX-4 from MX-3.

The downgrades follow Moody's action on General Motors Acceptance Corp. LLC's ratings. GMAC's senior unsecured rating was downgraded to B2 from B1 and placed on review for further downgrade. GMAC Mexicana's debt ratings are based on irrevocable and unconditional guarantees provided by GMAC LLC, the agency noted.

Although GMAC Mexicana's financial performance on a standalone basis remains adequate, Moody's said the financial standing of GMAC LLC is now weaker, as reflected in its B2 rating.

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