On Oct. 17, 2007, Standard&Poor's Ratings Services placed its ratings on GMAC LLC (GMAC), including its 'BB+/B-1' counterparty credit rating, on CreditWatch with negative implications. The CreditWatch action follows the announcement of its 100% owned subsidiary, Residential Capital LLC (BBB-/Watch Neg/A-3), of a significant downsizing of its operations. The plan includes an employee reduction of approximately 3,000 or 25% of the total headcount. Additionally, the cost of the reduction, which will be reflected as a fourth-quarter 2007 charge on Residential Capital LLC's books, will be approximately $100 million. Residential Capital LLC has historically been a significant contributor to GMAC's operating performance. However, recent market conditions have increasingly pressured operations at Residential Capital LLC, which has reported sizable losses
