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Rating Action:

Moody's takes actions on GMAC auto floorplan transactions

28 Jan 2009

New York, January 28, 2009 -- Moody's Investors Service has taken the following ratings actions on dealer floorplan asset-backed notes issued by GMAC LLC ("GMAC"). The ratings actions are due to the high degree of uncertainty around several key variables associated with floorplan financings. These include the financial strength of the dealerships, the market value of the vehicles that secure the loans, and the macroeconomic and business challenges facing General Motor Corporation ("GM"). The transactions feature revolving pools of receivables payable by auto dealers and secured by the dealers' related inventory of vehicles. The dealers' accounts were originated and are serviced by GMAC.

Superior Wholesale Inventory Financing Trust X

Class A Notes, including RN1 and RN2, Downgraded to A3 from Aa3 and remain Under Review for further Possible Downgrade; previous on 11/25/2008 Downgraded to Aa3 from Aaa and Placed Under Review for further Possible Downgrade

Class B Notes, remain Under Review for further Possible Downgrade; previous on 11/25/2008 Downgraded to B2 from A2 and Placed Under Review for further Possible Downgrade

Class C Notes, remain Under Review for further Possible Downgrade; previous on 11/25/2008 Downgraded to B3 from Baa2 and Placed Under Review for further Possible Downgrade

Superior Wholesale Inventory Financing Trust XI

Class A Notes, including RN1 and RN2, Downgraded to A3 from Aa2 and remain Under Review for further Possible Downgrade; previous on 11/25/2008 Downgraded to Aa2 from Aaa and Placed Under Review for further Possible Downgrade

Class B Notes, Downgraded to B2 from B1 and remain Under Review for further Possible Downgrade; previous on 11/25/2008 Downgraded to B1 from A2 and Placed Under Review for further Possible Downgrade

Class C Notes, remain Under Review for further Possible Downgrade; previous on 11/25/2008 Downgraded to B3 from Baa2 and Placed Under Review for further Possible Downgrade

Superior Wholesale Inventory Financing Trust 2007-AE-1

Class A Notes, Downgraded to Aa2 from Aaa and remain Under Review for further possible downgrade

Class B Notes, Downgraded to Aa3 from Aaa and remain Under Review for further Possible Downgrade; previous on 11/25/2008 Placed Under Review for Possible Downgrade

Class C Notes, Downgraded to Baa1 from Aa1 and remain Under Review for further Possible Downgrade; previous on 11/25/2008 Downgraded to Aa1 from Aaa and Placed Under Review for further Possible Downgrade

Class D Notes, Downgraded to Baa3 from Aa2 and remain Under Review for further Possible Downgrade; previous on 11/25/2008 Downgraded to Aa2 from Aaa and Placed Under Review for further Possible Downgrade

SWIFT Master Auto Receivables Trust Series 2007-1

Class A Notes, Downgraded to Aa2 from Aaa and remain Under Review for further possible downgrade

Class B Notes, Downgraded to Aa3 from Aaa and remain Under Review for further Possible Downgrade; previous on 11/25/2008 Placed Under Review for Possible Downgrade

Class C Notes, Downgraded to Baa1 from Aa1 and remain Under Review for further Possible Downgrade; previous on 11/25/2008 Downgraded to Aa1 from Aaa and Placed Under Review for further Possible Downgrade

Class D Notes, Downgraded to Baa3 from A1 and remain Under Review for further Possible Downgrade; previous on 11/25/2008 Downgraded to A1 from Aaa and Placed Under Review for further Possible Downgrade

SWIFT Master Auto Receivables Trust Series 2007-2

Class A Notes, Downgraded to Aa2 from Aaa and remain Under Review for further possible downgrade

Class B Notes, Downgraded to Aa3 from Aaa and remain Under Review for further Possible Downgrade; previous on 11/25/2008 Placed Under Review for Possible Downgrade

Class C Notes, Downgraded to Baa1 from Aa1 and remain Under Review for further Possible Downgrade; previous on 11/25/2008 Downgraded to Aa1 from Aaa and Placed Under Review for further Possible Downgrade

Class D Notes, Downgraded to Baa3 from A1 and remain Under Review for further Possible Downgrade; previous on 11/25/2008 Downgraded to A1 from Aaa and Placed Under Review for further Possible Downgrade

RATIONALE

Since the rating actions on the GMAC auto floorplan deals on November 25, 2008, Moody's further assessed, among other things, the potential for bankruptcy at GM (reorganization and liquidation), potential dealer default rates, collateral recovery values, and servicer readiness to monitor dealers and secure collateral should numerous dealers default simultaneously. The rating actions reflect Moody's updated view of key driving factors in the floorplan transactions following the review process.

Our rating action reflects the high degree of uncertainty around a number of assumptions, particularly those applicable to Chapter 11 or Chapter 7 bankruptcy scenarios. The ratings of the subordinated notes also reflect high loss severities upon default for the smaller sized bonds.

The notes remain on review for further possible downgrade due to significant uncertainty surrounding GM in 2009. On December 4, 2008, the Bush Administration approved $17.4 billion in short-term emergency loans for General Motors and Chrysler. The loans provided near-term liquidity to both companies, but also identified key targets against which the companies must show substantial progress if the existing loans are to be extended beyond March 31, 2009 and if additional requested funding is to be provided. Whether the funding will still be available and whether a more complete agreement can be reached with the government in early 2009 should have implications on GM's floorplan transactions because of their direct exposure to GM.

RATING METHODOLOGY

Moody's floorplan analysis is based on a joint-default probability analysis of both the manufacturer and dealers. Loss given default is determined by analyzing the collateral at risk net of recoveries. The total collateral at risk upon a joint-default of manufacturer and dealer is the remaining unpaid floorplan loan balance. The balance is calculated based on total payments as determined by monthly payment rate prior to dealer default.

The analysis is implemented through a simulation model, which simulates losses during a two year amortization period following an event of default based on a set of key modeled assumptions as follows:

- Manufacturer bankruptcy scenarios

- Dealer default rates

- Recovery rates

- Payment rates

In addition, Moody's includes other assumptions in the simulation model such as the impact of macroeconomic activity on manufacturer and dealer default probability, the correlation of default between manufacturer and dealer. In addition, the model includes assumptions about the frequency of diversion of vehicle sale proceeds by the dealership ("sold out of trust").

The above modeled assumptions form the basis of the quantitative analysis executed through a simulation model. Manufacturer default is simulated, which is further specified into Chapter 11 and Chapter 7 bankruptcies. Manufacturer default probability is modeled based on committee assessment, often with reference to the manufacturer rating. Next, the simulation model simulates dealer default, which takes place randomly throughout the two-year amortization period. The final step in simulation is to calculate total principal collections. For defaulted dealers, the model calculates total collateral at risk determined by payment rate prior to dealer default and then applies a recovery rate under different circumstances where the manufacturer is either in a non-bankrupt status, a Chapter 11 bankruptcy or a Chapter 7 bankruptcy.

Each simulation run simulates a total loss and corresponding internal rate of return ("IRR") reduction for each bond. This IRR reduction helps form the quantitative basis of our rating assessment. Moody's also evaluates qualitative factors such as the quality of provided information, servicer strength, and dealership profile. Combining the qualitative and quantitative analysis, a final rating level is determined.

Other methodologies and factors that may have been considered in the process of rating this issue can also be found at www.moodys.com in the Credit Policy & Methodologies directory, in the Ratings Methodologies subdirectory.

SERVICER

GMAC provides wholesale, retail, and lease financing, primarily to GM dealers and is one of the world's largest auto finance companies. General Motor Corporation, headquartered in Detroit, Michigan, is one the world's largest auto manufacturers. GM's long-term unsecured bonds are rated Ca with a negative outlook, while GMAC's long-term unsecured bonds are rated C.

For more information, please see www.moodys.com.

New York
Mark DiRienz
Managing Director
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

New York
Wei Hu
Vice President - Senior Analyst
Structured Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Moody's takes actions on GMAC auto floorplan transactions
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