Moody's Eyes ResCap Ratings

Moody's Investors Service has placed Residential Capital Corp.'s ratings under review for possible downgrade after its corporate parent, General Motors, experienced downgrades related to the Oct. 9 bankruptcy filing of Delphi Corp., a former nonmortgage subsidiary to which GM still has financial ties.The ResCap ratings had previously been assigned a negative rating outlook. Moody's said the move "is not a result of any change in Moody's views regarding ResCap's intrinsic creditworthiness … but rather reflects the rating reviews for possible downgrade of its parent, GMAC, and ultimate parent, GM." The rating agency added that, "Although the residential real estate finance business of ResCap, and auto finance business of GMAC, are separate from an operating perspective, ResCap continues to be substantially dependent on the support of GMAC in regard to its capital structure, though such support should continue to diminish."