Fitch Downgrades GMAC LLC's L-T IDR to 'BB-'; Outlook Remains Negative

Business Wire, May 2, 2008

NEW YORK -- Fitch Ratings has downgraded the long-term Issuer Default Rating (IDR) of GMAC LLC (GMAC) and related subsidiaries to 'BB-' from 'BB'. Fitch has also downgraded GMAC's unsecured long-term ratings to 'B ' from 'BB-', reflecting the potential for reduced recovery in a default scenario should the company encumber assets. Additionally, Fitch has affirmed the 'B' short-term ratings. The Rating Outlook remains Negative. Approximately $85 billion of unsecured debt is affected by this action. A complete list of ratings is detailed at the end of this release. For information on Residential Capital LLC (ResCap), please see separate release issued today.

The downgrade of GMAC's L-T IDR reflects in part continued financial deterioration at ResCap, which has necessitated further financial support from GMAC as part of a debt exchange at ResCap. In addition, given the current capital markets environment, Fitch believes that GMAC may need to encumber assets to enhance its liquidity. To the extent this occurs, it would subordinate current debt holders and reduce recovery prospects in a default scenario.

Fitch's Negative Outlook on GMAC continues to reflect the more challenging economic environment that will continue to pressure core operating performance. Given reduced industry sales, GMAC's financing volumes will likely decline unless offset by higher penetration rates. In addition, Fitch expects automotive credit quality to remain pressured throughout 2008 due to rising consumer defaults and higher loss severity upon default. Ratings could be lowered if core profitability (excluding ResCap) weakens coupled with credit quality deterioration beyond historical averages.

Fitch has downgraded the following ratings with a Negative Outlook:

GMAC LLC

GMAC International Finance B.V.

GMAC Bank GmbH

GMAC Canada Ltd.

General Motors Acceptance Corp. of Canada Ltd.

General Motors Acceptance Corp. of Australia

--Long-term IDR to 'BB-' from 'BB';

--Senior debt to 'B ' from 'BB'.

General Motors Acceptance Corp. (NZ) Ltd.

--Long-term IDR to 'BB-' from 'BB'.

Fitch has also affirmed the following ratings:

GMAC LLC

GMAC International Finance B.V.

GMAC Bank GmbH

General Motors Acceptance of Canada Ltd.

General Motors Acceptance Corp. of Australia

GMAC Australia (Finance) Ltd.

General Motors Acceptance Corp. (U.K.) Plc

General Motors Acceptance Corp. (N.Z.) Ltd.

GMAC Canada Ltd.

--Short-term IDR 'B';

--Short-term debt 'B'.

GMAC Canada Ltd.

--Short-term IDR 'B'.

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.