ResCap Downgraded, Outlook Revised

A key rating of Residential Capital LLC was lowered by Standard & Poor's Ratings Services after the announcement of ResCap's huge subprime-related first-quarter loss, and Moody's Investors Service and Fitch Ratings revised ResCap's ratings outlook from stable to negative.S&P downgraded ResCap's counterparty credit rating from BBB/A-3 to BBB-minus/A-3, while affirming the counterparty credit rating of its parent company, GMAC LLC, at BB-plus/B-1. "ResCap's loss was significantly worse than we had anticipated," S&P said. S&P rated ResCap's outlook as stable, but GMAC's outlook was revised from developing to negative. Moody's revised ResCap's outlook from stable to negative and said GMAC's ratings are not affected. Fitch also revised its rating outlook for ResCap from stable to negative and affirmed the company's issuer and debt ratings. The rating agencies can be found online at http://www.standardandpoors.com, http://www.moodys.com, and http://www.fitchratings.com.