Fitch Downgrades GMAC

The senior unsecured ratings of General Motors, GMAC, and the majority of affiliated entities have been downgraded from BBB-minus to BB-plus by Fitch Ratings.The long-term and short-term ratings of GMAC, including GMAC Bank and GMAC Commercial Mortgage Bank, were lowered in connection with the downgrade of GM, which reflected a decline in its sales of sport utility vehicles and growing competition in the pickup truck market, the rating agency said. (The short-term ratings were lowered from F3 to B.) "The Rating Watch Evolving on GMAC Bank reflects its position within the newly created Residential Capital Corp. and GMAC's intention to ring-fence its residential mortgage business in order to achieve a higher rating," Fitch said. A Rating Watch Evolving outlook was also assigned to GMAC Commercial Mortgage Bank "in order to assess GMAC's intent to divest a partial stake in this business," the rating agency said. Fitch can be found online at http://www.fitchratings.com.