CHICAGO -- Fitch Ratings has downgraded the ratings of General Motors, GMAC and the majority of their affiliated entities to 'BB+' from 'BBB-'.

Fitch's actions reflect the decline in GM's North American sales of its mid-size and large SUVs, the increasing competiton in the large pickup market and the impacts of both pricing and product competition on consolidated profitability.

The long-term and short-term ratings of GMAC were lowered in conjunction with the downgrade of GM, reflecting the strong connection between the parent company and its financial arm.

Fitch Ratings says it does not believe GMAC currently meets its criteria to warrant a rating above its parent company. It does, however, see GMAC's liquidity adequate enough in the near-term to address its maturing debt obligations, but the company will have to rely on secured funding sources in the future, such as whole loan sales, to fund the automotive finance portfolio.

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