Moody’s grants GMAC stay of execution

Moody’s says that it intends to keep GMAC’s senior unsecured Ba1 rating under review for the time being, breaking its rule of resolving ratings within three months of announcing a review.

GMAC’s ratings were placed on review last October when parent General Motors announced that it wanted to sell a controlling interest in its finance unit in order to get a better rating for the subsidiary and lower its cost of funding.

The rating agency said in a statement in late January that it was deferring its decision because, although no sale of GMAC had been announced, GM officials had indicated that they were conducting due diligence with potential investors.

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