Reply #60: S&P: GM ratings stay on 'creditwatch negative' on GMAC deal [View All]

[UpInArms]

http://www.marketwatch.com/News/Story/Story.aspx?guid=%7B863F259F%2DDAEE%2D40EA%2DADAA%2D5FB1A5BDF505%7D&dist=newsfinder&symbol=&siteid=mktw

SAN FRANCISCO (MarketWatch) -- Standard & Poor's Ratings Services on Monday said all of its ratings on General Motors Corp. (GM 20.96, -0.31, -1.5% ) , including its B long-term and B-3 short-term corporate credit ratings, remain on creditwatch with negative implications following the company's agreement to sell a 51% ownership stake in General Motors Acceptance Corp. to a consortium led by Cerberus Capital Management L.P. "Our preliminary assessment is that if the GMAC transaction is completed as proposed, GMAC's long-term rating would be raised to 'BB+'," said S&P credit analyst Robert Schulz in a statement. The agency said it will finalize its assessment, including GMAC's outlook, near the time of the transaction's closing, which GM expects to be late this year. Additionally, S&P said it now believes it could lower GM's ratings at any time because of evolving events at former unit Delphi Corp. (DPHIQ 0.61, -0.03, -4.7% ).