GMAC

For the first quarter, GMAC posted a loss of $305 million compared with a year-earlier profit of $495 million. Excluding its Residential Capital LLC unit, GMAC had first-quarter earnings of $605 million, up from $311 million a year ago. GMAC's revenue dropped 27% to $3.38 billion from $4.62 billion. GMAC's home-lending unit, also known as ResCap, posted a loss of $910 million compared with a year-earlier profit of $201 million, due to continued pressures of the U.S. mortgage market NEW YORK (Standard & Poor's) May 2, 2007--Standard & Poor's Ratings Servicessaid today that it affirmed its 'BB+/B-1' counterparty credit rating on GMACLLC (GMAC). The outlook was revised to negative from developing. At the sametime, we lowered our counterparty credit rating on GMAC's 100%-ownedsubsidiary, Residential Cap LLC (ResCap), to 'BBB-/A-3' from 'BBB/A-3'. Theoutlook on ResCap is stable. -ResCap will continue to be a drag on its earnings. worse than anticipated, pooer performance persist for at leats the next year. -Auto Finance and Insurance segments remain dependant on GM for its volume. GM deterioration will impact GMAC "The revision of GMAC's outlook and the downgrade of ResCap reflectassive additional losses at ResCap's subprime mortgage business, totaling910 million after-tax in first-quarter 2007," said Standard & Poor's creditnalyst Scott Sprinzen. These losses caused GMAC overall to be unprofitable https://www.creditsights.com/corp/_hpc/_69/051810.htm?view=Articles_XmlArtList&referringChannelPath=/finsec/