The ratings on General Motors Acceptance Corp. (GMAC) reflect those of its parent, General Motors Corp. (GM). (See the full analysis on GM published May 6, 2005, on RatingsDirect, Standard&Poor's Web-based research and credit analysis system.) On May 5, 2005, Standard&Poor's Ratings Services lowered its long- and short-term corporate credit ratings on GM, GMAC, and all related entities to 'BB/B-1' from 'BBB-/A-3'. The rating outlook is negative. Consolidated debt outstanding totaled $291.8 billion at March 31, 2005. The downgrade to non-investment-grade reflects our conclusion that management's strategies may be ineffective in addressing GM's competitive disadvantages. Still, GM should not have any difficulty accommodating near-term cash requirements. The effort by Kirk Kerkorian's Tracinda Corp. to increase its
