Standard&Poor's Ratings Services ratings on General Motors Acceptance Corp. (GMAC; 'BB/B-1') and GMAC's subsidiary, Residential Capital Corp. (ResCap; 'BBB-/A-3'), remain on CreditWatch with developing implications following the announcement on April 3, 2006, by ultimate parent General Motors Corp. (GM; B/Watch Neg/B-3) that GM has entered into a definitive agreement to sell a 51% ownership stake in GMAC to a consortium headed by Cerberus Capital Management L.P. and including Citigroup Inc. and Aozora Bank Ltd. (which is majority-owned by Cerberus). Based on our preliminary assessment, we believe that if the transaction is completed as proposed, GMAC's long-term rating would be raised to 'BB+', and ResCap's long- and short-term ratings would be raised to 'BBB/A-2'. We will finalize our assessment
