S&P: ResCap still on watch

Standard & Poor's said its issuer credit and issue-level ratings on Residential Capital LLC remain on CreditWatch with negative implications, where they were placed Nov. 10, 2011.

According to S&P, ResCap recently announced a one-month extension to May 14 for the maturity dates of two senior credit facilities provided by its parent, Ally Financial.

"The CreditWatch on ResCap was based in part on our view that the company might not have access to sufficient liquidity to cover obligations under the maturing facilities, along with uncertainties associated with the potential for ResCap's parent to extend the facilities or provide some other form of support," said S&P credit analyst Thomas Connell in a news release.

In February, the agency said it lowered the issuer credit rating on ResCap to CC while maintaining the CreditWatch negative, reflecting an expectation of limited, if any, future support for ResCap from Ally.

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