Fitch: GMAC & ResCap Remain on Watch Evolving On Accounting Issues

Business Wire, March 17, 2006

NEW YORK -- The ratings for General Motors Acceptance Corp. (GMAC) and its wholly-owned subsidiary Residential Capital Corp. (ResCap) remain on Rating Watch Negative by Fitch Ratings following the announcement that GMAC will delay filing their SEC form 10-K(s) and will be required to either restate or reclassify certain items in prior financial statements to address a recently surfaced accounting issue. The issue pertains to the erroneous classification of cash flows from certain mortgage loan transactions as either cash flows from operations or cash flows from investing activities. This reclassification will not impact reported net income, balance sheet or total cash flows for the periods affected. The issue is material for ResCap, however, it still undetermined whether this will be material for GMAC. The companies have not indicated the size of the potential accounting issue at this time.

While Fitch is concerned that the companies did not properly apply appropriate GAAP related to the associated cash flows from loan originations, Fitch does not believe that what amounts to a reclassification of these cash flows is analytically significant and thus, by itself, will not have any effect on the current ratings or Rating Watch status. Fitch's concern would be heightened if the companies are not able to complete the filing process within the next two weeks.

The following ratings remain on Rating Watch Evolving by Fitch:

GMAC

--L-T Issuer Default Rating (IDR) 'BB'.

ResCap

--L-T Issuer Default Rating (IDR) 'BBB-'.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.