Fitch Ratings has placed the national ratings of Banco GMAC S.A. (GMAC) on Rating Watch Negative as follows:
--Long-term National Rating: 'A(bra)';
--Short-term National Rating: 'F1(bra)'.
GMAC's ratings are based on support from its parent, Ally Financial Inc. (Ally) (Long-term Issuer Default Rating [IDR] 'BB-', Rating Watch Negative), and today's action follows the placement of Ally's ratings on Negative Watch on April 18, 2012. Further changes in Ally's ratings or Outlook or a change in its capacity and willingness to support its subsidiary would directly affect the ratings or Outlook of GMAC.
On May 15, 2012, Fitch downgraded the Long-term IDR of Residential Capital LLC (ResCap) to 'D' from 'C' following the company's filing of voluntary petition seeking relief under Chapter 11 of the U.S. Bankruptcy code. Meanwhile it maintained the IDR on Rating Watch Negative and senior unsecured debt ratings of Ally and its subsidiaries. In resolving the Rating Watch on Ally, Fitch will focus on the repayment of the secured debt facility with ResCap, monitor the court approval process of the proposed settlement agreement with ResCap and its creditors, and assess the overall impact of these actions on Ally's capital and liquidity position. Fitch will also continue to monitor Ally's costs and access to funding for its core auto business.
These rating actions do not affect the ratings of Ally's fully owned subsidiary in Chile, GMAC Comercial Automotriz S.A., or the short-term rating of the local issues of the senior secured debt issued by its fully owned subsidiary in Mexico, Ally Credit, S.A. de C.V. SFOM E.N.R.. The ratings of the Chilean subsidiary are based on support from its parent, while the rating of the Mexican debt derives from Ally's irrevocable and unconditional guarantee of the debt.
The secured debt ratings of GMAC Financiera S.A. de C.V. SFOM E.N.R., a Mexican mortgage company owned by ResCap until recently, reflect the proposed debt exchange announced by its new owner. Fitch could downgrade these ratings in the event of default at the maturity date (June 2012), or upon successful completion of the proposed exchange.
In its press release from May 14, 2012, Ally announced that it would explore strategic alternatives for all its international businesses, including the auto finance, insurance, and banking and deposit operations in South America. Fitch will monitor the evolution of the shareholder structures as well as Ally's capacity and propensity to support its subsidiaries in Latin America and will review the ratings if it deems necessary.
Following is a list of entities whose ratings remain unchanged:
GMAC Comercial Automotriz S.A. (Chile):
--Long-term National Rating: 'BBB+(cl)', Outlook Negative;
--Short-term National Rating: 'F2(cl)'.
Ally Credit, S.A. de C.V. SFOM E.N.R. (Mexico):
--National-scale short-term rating for local issues of senior secured debt: 'F2(mex)', Rating Watch Negative.
GMAC Financiera S.A. de C.V. SFOM E.N.R. (Mexico):
--National-scale long-term rating for local issues of senior secured debt: 'C(mex)'.
Additional information available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.
Applicable Criteria and Related Research:
-- 'Global Financial Institutions Rating Criteria' (Aug. 16, 2011);
-- 'National Ratings Criteria' (Jan. 19, 2011);
-- 'Finance and Leasing Companies' (Dec. 12, 2011);
-- 'Rating Linkages in Nonbank Financial Subsidiary Relationships' (Nov. 29, 2011).
Applicable Criteria and Related Research:
Rating Linkages in Nonbank Financial Subsidiary Relationships
Finance and Leasing Companies Criteria
National Ratings Criteria
Global Financial Institutions Rating Criteria
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