The ratings on General Motors Acceptance Corp. (GMAC) reflect those of its parent, General Motors Corp. (GM). (See the full analysis on GM published Oct. 21, 2004, on RatingsDirect, Standard&Poor's Web-based research and credit analysis system.) GM's ratings reflect its standing as the world's largest automaker, including its presence in the growing, relatively high-margin North American sport utility vehicle (SUV) and pickup segments. In addition, GM benefits from its extensive sales finance business, which is conducted through GMAC, from GMAC's highly profitable mortgage business, and from substantial liquidity at both GM and GMAC. However, the ratings also reflect the clouded prospects of GM's automotive operations, given increasingly competitive industry conditions in all of the company's core markets. Moreover,
