Fitch lowers AmeriCredit

Fitch Ratings said it downgraded the long-term issuer default rating of AmeriCredit Corp. to B- from B+. Ratings remain on Rating Watch negative.

The downgrade reflects the impact of reduced origination volume and profitability prospects on the company's franchise value and the potential that it could trip the net charge-off covenant on its master warehouse facility as the combined impact of a shrinking portfolio and seasonal credit deterioration could inflate the six-month average net loss rate above the 8.5% trigger, according to the agency.

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