NEW YORK (Standard&Poor's) May 2, 2007--Standard&Poor's Ratings Services said today that it affirmed its 'BB+/B-1' counterparty credit rating on GMAC LLC (GMAC). The outlook was revised to negative from developing. At the same time, we lowered our counterparty credit rating on GMAC's 100%-owned subsidiary, Residential Cap LLC (ResCap), to 'BBB-/A-3' from 'BBB/A-3'. The outlook on ResCap is stable. "The revision of GMAC's outlook and the downgrade of ResCap reflect massive additional losses at ResCap's subprime mortgage business, totaling $910 million after-tax in first-quarter 2007," said Standard&Poor's credit analyst Scott Sprinzen. These losses caused GMAC overall to be unprofitable (net loss of $305 million), notwithstanding strong performance by GMAC's automotive finance, insurance, and other businesses.
