The ratings on General Motors Acceptance Corp. (GMAC) are the same as those on General Motors Corp. and reflect our conclusion that management's strategies may be ineffective in addressing GM's competitive disadvantages. Still, GM should not have any difficulty accommodating near-term cash requirements. Debt outstanding totaled $291.8 billion at March 31, 2005. The effort by Kirk Kerkorian's Tracinda Corp. to increase its ownership stake in GM represents an additional uncertainty and possible concern; however, given the range of possible outcomes, Mr. Kerkorian's stake is not a rating factor at this time, but could well become so. GM's board of directors recently announced that it was expressing no opinion regarding Tracinda's ownership offer and would be "neutral" to such an offer.
