On March 15, 2007, Standard&Poor's Ratings Services affirmed its 'BB+/B-1' ratings on GMAC LLC (GMAC). The outlook remains developing. At the same time, we affirmed our ratings on GMAC's 100%-owned subsidiary, Residential Cap LLC (BBB/A-3). The outlook on Residential Cap remains negative. (See separate release regarding Residential Cap.) The affirmation of our ratings follows the announcement of extremely weak fourth-quarter earnings, excluding the effects of nonrecurring items. GMAC's disappointing results reflect a precipitous decline in Residential Cap's financial performance, owing to its exposure to the deteriorating subprime mortgage sector. However, while we expect Residential Cap's earnings to remain depressed during the next several quarters, we believe Residential Cap will be well-positioned to resume solid earnings growth thereafter, as
