On April 3, 2006, Standard&Poor's Ratings Services said its 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 by ultimate parent General Motors Corp. (B/Watch Neg/B-3; see the separate research update also published April 3, 2006, on RatingsDirect, Standard&Poor's Web-based research and credit analysis system) 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. Based on our preliminary assessment, we currently believe that if the transaction is completed as proposed, GMAC's long-term rating would be raised
