Fitch Eyes ResCap's Servicer Ratings

The residential servicer ratings of Residential Capital LLC, Minneapolis, have been placed on Rating Watch Negative by Fitch Ratings. The affected ResCap ratings are as follows: residential primary servicer for prime and alternative-A products RPS2-plus; residential primary servicer for subprime, high loan-to-value, and home equity/home equity line of credit product, RPS2; residential primary specialty -- subservicer, RPS2-plus; residential special servicer, RSS2-plus; and residential master servicer, RMS2-plus. The rating actions "reflect the continued pressure on ResCap's liquidity position and financial flexibility and the potential impact on the company's servicing operations," the rating agency said. Fitch downgraded ResCap's Issuer Default Rating from BB-minus to C on May 2 after the company announced a debt exchange offer. The company's corporate ratings remain on Rating Watch Negative pending the execution of the offer, Fitch said. The rating agency can be found online at http://www.fitchratings.com.