On Nov. 20, 2008, Standard&Poor's Ratings Services lowered selected ratings on GMAC LLC and its 100% owned subsidiary, Residential Capital LLC, including lowering the long-term counterparty credit rating on GMAC LLC to 'CC' from 'CCC' and lowering the long-term counterparty credit rating on Residential Capital LLC to 'CC' from 'CCC-'. These actions follow the launch of GMAC LLC exchange offers for certain notes of both entities. We view the exchange as a distressed debt exchange. The ratings on both GMAC LLC and Residential Capital LLC are placed on CreditWatch with negative implications. The downgrade reflects the probability that, with the successful execution of the exchange offers, which will pay less than face value to certain bondholders, Standard&
