GENERAL MOTORS ACCEPTANCE CORP. SENIOR DEBT RATED 'A-' COMMERCIAL PAPER RATED DUFF 1
GENERAL MOTORS ACCEPTANCE CORP. SENIOR DEBT RATED 'A-'
COMMERCIAL PAPER RATED DUFF 1
CHICAGO, Dec. 26 /PRNewswire/ -- Duff & Phelps Credit Rating Co. today assigned ratings to General Motors Acceptance Corporation's securities as follows: senior debt 'A-' (Single-A-Minus), subordinated debt 'BBB+' (Triple-B-Plus), and commercial paper Duff 1. These ratings are Duff & Phelps initial public ratings for General Motors Acceptance's securities. The ratings apply to approximately $79 billion of securities.
The ratings for General Motors Acceptance (GMAC) reflect the strong asset quality and good profitability measures of GMAC as well as the close marketing, operational and financial ties with parent General
Motors. Nearly all of GMAC's receivables are GM related. Although there is no formal support agreement between the two, GMAC is an important marketing arm for GM. GMAC periodically offers credit at below market rates to stimulate sales, with GM or the dealers making up the difference between market rates and the reduced rates. GMAC financed 37 percent of GM's new vehicle deliveries during 1990 and 38 percent in the first nine months of 1991.
Importantly, GMAC has taken steps to protect itself from the adverse economic environment affecting auto manufacturers in general and parent General Motors in particular. These include reducing the amount of financial leverage utilized (the debt to equity ratio is now 10.0:1 versus earlier 11-12:1 levels), developing asset securitization programs, and increasing the liquidity of the balance sheet by lengthening the debt structure.
GMAC is the world's largest finance company, providing worldwide wholesale, retail and lease financing for its parent's products. GMAC also provides insurance, marine financing and mortgage banking services. The $79.5 billion receivable portfolio at Sept. 30, 1991, divided 70 percent auto retail, 13 percent auto wholesale, 9 percent lease financing, 1 percent leasing, 5 percent term loans to dealers and other, and 2 percent other.
/CONTACT: Daryl R. Leehaug of Duff & Phelps, 312-368-3124/
(GM) CO: General Motors Acceptance Corp.; General Motors Corp. ST: Michigan IN: AUT FIN SU: RTG SM -- NY009 -- 5285 12/26/91 12:10 EST