S&P: AmeriCredit outlook positive

Standard & Poor's said it revised its outlook on AmeriCredit Corp. to positive from stable and affirmed its ratings on the company, including its B long-term counterparty credit rating.

S&P said the outlook revision reflects the continued improvement in AmeriCredit's financial performance and asset quality measures, in addition to its strengthened liquidity and capital.

S&P noted AmeriCredit has been highly successful in restructuring the company in accordance with its turnaround plan announced in February 2003. Third-quarter fiscal 2004 results showed better earnings performance, the best delinquency rate since the mid-1990s and declining charge-offs, leading the company to lower its projected quarterly annualized loss assumption to the range of 5.5% to 6.5% for the remainder of the year.

The company's liquidity position has improved, with unencumbered cash reaching a substantial $510 million at March 31. Unencumbered assets-to-unsecured debt provides a healthy 2x coverage, according to S&P.

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