Fitch Revises AmeriCredit's Outlook to Positive; Affirms IDR at 'BB-'.

NEW YORK -- Fitch Ratings has revised the Rating Outlook on AmeriCredit Corp. (ACF) to Positive from Stable. Additionally, Fitch affirms ACF's Issuer Default Rating (IDR) and senior unsecured rating of debt at 'BB-'. ACF redeemed all of its high yield debt of $154 million.

The Positive Outlook reflects Fitch's view that ACF's future performance will improve while maintaining a controlled growth strategy and managing within its current capital and liquidity position. Improvement of asset quality and maintaining profitability within present levels are also factors that would benefit the rating. Fitch also views positively changes in the company's securitization program, such as varying surety providers and discontinuance of cross-collateralization. Fitch believes the issuance of additional senior/subordinated securities should also help to mitigate potential liquidity issues. Conversely, the company's limited funding profile and comparatively riskier business focus on subprime auto lending are rating constraints.

ACF's liquidity position has improved as unrestricted cash is at an all-time high. The enhanced cash position was mainly from cash distributions from securitization trusts that had better-than-expected performance. Fitch notes that the company's liquidity position should improve in the near term as residual assets liquidate. However, due to the present high levels of cash, Fitch believes a reduction is to be expected. The company recently utilized cash to acquire Bay View Acceptance Corp. (BVAC) and to repay its outstanding high yield debt.

The company's present capital level is ample for its risk profile at current or potentially higher ratings. Capitalization is expected to remain stable as ACF continues to grow its loan portfolio and/or originations. In the past, the company's robust growth strategy caused deterioration in its capitalization ratios. Fitch views positively management's efforts to prudently grow the balance sheet within internal capital generation.

Fitch believes continued improvement in operating performance and asset quality in line with recent performance could support a rating upgrade. ACF has generated improved asset quality as evident by the lower level of charge-offs. Credit quality in the near term is expected to improve as the BVAC prime quality product should lower credit losses and newer originations with higher underwriting criteria begin to season. Thus far, securitizations executed in 2003 and 2004 have resulted in the lowest vintage loss in ACF's history. Fitch would view negatively deviation from the company's current credit mix of borrowers to a higher level of lower subprime customers.

ACF is one of the largest independent subprime auto lenders with $11.1 billion managed receivables and $2.0 billion in equity at March 31, 2006. It maintains 88 network branches throughout the U.S.

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