Moodys.com
Close
Please Note
We brought you to this page based on your search query. If this isn't what you are looking for, you can continue to Search Results for ""
The maximum number of items you can export is 3,000. Please reduce your list by using the filtering tool to the left.
Close
Close
Email Research
Recipient email addresses will not be used in mailing lists or redistributed.
Recipient's
Email

Use semicolon to separate each address, limit to 20 addresses.
Enter the
characters you see
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
LOG IN
Don't want to see this again?
REGISTER
OR
Accept our Terms of Use to continue to Moodys.com:

PLEASE READ AND SCROLL DOWN!

By clicking “I AGREE” [at the end of this document], you indicate that you understand and intend these terms and conditions to be the legal equivalent of a signed, written contract and equally binding, and that you accept such terms and conditions as a condition of viewing any and all Moody’s inform​ation that becomes accessible to you [after clicking “I AGREE”] (the “Information”).   References herein to “Moody’s” include Moody’s Corporation, Inc. and each of its subsidiaries and affiliates.

Terms of One-Time Website Use

1.            Unless you have entered into an express written contract with Moody’s to the contrary, you agree that you have no right to use the Information in a commercial or public setting and no right to copy it, save it, print it, sell it, or publish or distribute any portion of it in any form.               

2.            You acknowledge and agree that Moody’s credit ratings: (i) are current opinions of the future relative creditworthiness of securities and address no other risk; and (ii) are not statements of current or historical fact or recommendations to purchase, hold or sell particular securities.  Moody’s credit ratings and publications are not intended for retail investors, and it would be reckless and inappropriate for retail investors to use Moody’s credit ratings and publications when making an investment decision.  No warranty, express or implied, as the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any Moody’s credit rating is given or made by Moody’s in any form whatsoever.          

3.            To the extent permitted by law, Moody’s and its directors, officers, employees, representatives, licensors and suppliers disclaim liability for: (i) any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with use of the Information; and (ii) any direct or compensatory damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud or any other type of liability that by law cannot be excluded) on the part of Moody’s or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with use of the Information.

4.            You agree to read [and be bound by] the more detailed disclosures regarding Moody’s ratings and the limitations of Moody’s liability included in the Information.     

5.            You agree that any disputes relating to this agreement or your use of the Information, whether sounding in contract, tort, statute or otherwise, shall be governed by the laws of the State of New York and shall be subject to the exclusive jurisdiction of the courts of the State of New York located in the City and County of New York, Borough of Manhattan.​​​

I AGREE
Rating Action:

Moody's downgrades ResCap to Caa1, ratings on review down

23 Apr 2008
Moody's downgrades ResCap to Caa1, ratings on review down

New York, April 23, 2008 -- Moody's Investors Service downgraded to Caa1, from B2, its ratings on the senior debt of Residential Capital, LLC (ResCap). Separately, the senior unsecured rating of GMAC LLC (GMAC) was downgraded to B2 from B1 (see separate press release). Both the ResCap and GMAC ratings are under review for downgrade.

ResCap's downgrade follows the company's announcement that the two independent directors on its board have resigned. Moody's considered these independent directors a key component of ResCap's corporate governance due to their responsibility to protect the interests of ResCap's creditors in certain matters. "The absence of independent directors increases the likelihood that ResCap will take actions that are negative for creditors," said Moody's Vice President and Senior Credit Office Craig Emrick. Moody's noted that according to the GMAC/ResCap operating agreement ResCap cannot declare bankruptcy unless the board contains at least one independent director and a majority of the independent directors approve such action.

In its review Moody's will focus on liquidity, profitability prospects, and likelihood of future support by GMAC.

Moody's will consider the company's liquidity profile and its maintenance of appropriate contingent liquidity in the form of cash and liquid assets and/or committed credit lines available for general use. More specifically, the review will focus on the resolution of the company's $1.75 billion bank loan which matures in July 2008 and $875 million committed, undrawn, unsecured revolver which matures in June 2008 (although this facility can be termed out for one year).

Furthermore, Moody's does not expect the company to report quarterly profitability in 2008. The rating agency added the capital support of $1.2 billion received by ResCap from GMAC in the first quarter (at an approximately $600 million cash cost to GMAC) signals that ResCap experienced a sizable loss in the first quarter of 2008, its sixth consecutive quarterly loss.

Finally, the likelihood and form of continued support from GMAC and its ultimate parents Cerberus and GMAC, remain major rating issues. Moody's still believes that ResCap's parents may have a limited tolerance for supporting ResCap if ResCap's performance and condition fail to meet management's expectations for improvement during the first half of 2008.

Downgrades:

..Issuer: Residential Capital, LLC

....Multiple Seniority Shelf, Downgraded to a range of (P)Caa2 to (P)Caa1 from a range of (P)B3 to (P)B2

....Subordinate Regular Bond/Debenture, Downgraded to Caa2 from B3

....Senior Unsecured Regular Bond/Debenture, Downgraded to Caa1 from B2

..Issuer: Residential Funding of Canada Finance ULC

....Senior Unsecured Regular Bond/Debenture, Downgraded to Caa1 from B2

Outlook Actions:

..Issuer: Residential Capital, LLC

....Outlook, Changed To Rating Under Review From Negative

..Issuer: Residential Funding of Canada Finance ULC

....Outlook, Changed To Rating Under Review From Negative

ResCap is a subsidiary of GMAC LLC and is headquartered in Minneapolis, Minnesota. Rescap reported equity of $6.0 billion at December 31, 2007.

New York
Robert Young
Managing Director
Financial Institutions Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

New York
Craig A. Emrick
VP - Senior Credit Officer
Financial Institutions Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

No Related Data.
Moodys.com