Moody's cuts AmeriCredit

Moody's Investors Service said it downgraded AmeriCredit Corp.'s corporate family rating to B1 from Ba2 and its senior unsecured debt rating to B1 from Ba3. Ratings are on review for further downgrade.

The downgrade reflects the effects of potential franchise impairment and challenges to the company's wholesale funding model, according to the agency.

Balancing the credit challenges are the company's significant position in the large, fragmented indirect sub-prime auto market, adequate store of corporate liquidity, significant tangible equity base, efficient servicing systems and capable senior management team, the agency noted.

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