Fitch upgrades AmeriCredit

Fitch Ratings said it upgraded AmeriCredit Corp.'s long-term issuer default rating and senior unsecured debt rating to BB from BB-.

The outlook is positive.

The agency said the upgrade reflects AmeriCredit's favorable operating performance, portfolio diversification across the credit spectrum, improved asset quality metrics, solid liquidity profile and stable position in the auto finance market.

The positive outlook reflects Fitch's belief that AmeriCredit's risk profile will continue to benefit from diversification into prime and near-prime auto receivables. The agency said that while it believes asset quality metrics will be moderately impacted by a normalization of credit trends over the medium term, AmeriCredit's consolidated statistics should benefit from diversification across the credit spectrum.

Conversely, sustained weakness in operating performance or asset quality metrics, a weakening liquidity profile and/or a deteriorating capital structure could negatively impact the outlook, Fitch said.

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