Standard&Poor's Ratings Services' ratings on GMAC Inc. reflect the significant risks facing the company, including recent asset-quality deterioration in its auto portfolio; the ongoing stress at GMAC's 100% mortgage-lending subsidiary, Residential Capital LLC (CCC/Developing/C); uncertainty as to the fortunes of General Motors (GM; not rated), given GMAC's close business ties with it; and wholesale funding, a long-term issue that government support has solved only for the near term. Longer term, we believe current events illustrate the weakness inherent in GMAC's funding profile. Although GMAC is increasing its use of brokered and direct-to-consumer deposits, we see such deposits as sharing key characteristics of wholesale funding. This profile exposes the company to funding volatility in times of stress. Also, the
