Moody's puts Residential Capital on review

Moody's Investors Service said it placed under review for possible downgrade the Baa3 senior debt rating and prime-3 short-term debt rating of Residential Capital Corp, a real estate finance firm owned by GMAC. The rating outlook had been negative.

Moody's said it believes the Residential Capital and GMAC's ratings are connected. Moody's currently placed a cap on Residential Capital Corp.'s rating. (GMAC's senior debt rating is Ba1, also under review for downgrade).

Moody's said the review is not a result of any change in its views regarding Residential Capital's creditworthiness, which the rating agency deems to be Baa on a stand-alone basis. It reflects the reviews for possible downgrade of GMAC and ultimate parent, GM, Moody's said.

Moody's Baa3 senior debt rating reflects Residential Capital's firm position among the top 10 mortgage firms in the USA, a position Moody's said it expects will be maintained.

Moody's Prime-3 rating on the 364-day revolving credit facility recognizes the company funds its mortgage origination activities with short-term and mostly secured borrowing facilities.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.