Fitch Maintains Rating Watch Negative on GMAC-Serviced RMBS

NEW YORK--(BUSINESS WIRE)-- Fitch Ratings has maintained the Rating Watch Negative on 140 RMBS classes serviced by GMAC Mortgage (GMAC). GMAC is a subsidiary of Residential Capital LLC (ResCap). The affected classes were originally placed on Rating Watch Negative on April 19, 2012, following Fitch's downgrade of ResCap's Issuer Default Rating to 'C' from 'CCC' on April 18 and Fitch's assignment of Rating Watch Negative to GMAC's servicer ratings on April 19.

A spreadsheet listing the transactions reviewed can be found at 'www.fitchratings.com' by performing a title search for 'Fitch Maintains Rating Watch Negative on GMAC-Serviced RMBS Oct. 10, 2012'.

The classes were originally placed on Rating Watch Negative to reflect the increased uncertainty for the servicing portfolio due to the growing possibility of a bankruptcy or debt restructuring for ResCap.

Since April 19, ResCap filed for bankruptcy and the bankruptcy court began seeking bids for the servicing assets. Final bids are due in October and a bankruptcy court ruling on the sale is scheduled for November.

Fitch believes that although a servicing disruption is still not expected in the most-likely scenario, the increased risk of a disruption should be considered in stressed rating scenarios. Therefore, Fitch will maintain the Rating Watch Negative on all investment grade rated classes in subprime transactions and the 'AAsf' and 'AAAsf' rated classes in certain prime and Alt-A transactions that were identified as being most impacted by a servicing disruption.

Fitch will continue to monitor ResCap's ability and willingness to meet its financial obligations and the implications for GMAC's servicing portfolio.

Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.

Applicable Criteria and Related Research:

--'Fitch Downgrades ResCap's IDR to 'D'; Maintains Rating Watch Negative on Ally', (May 15, 2012);

--'Fitch Downgrades ResCap's IDR to 'C'; Places Ally Financial's 'BB-' IDR on Rating Watch Negative', (April 18, 2012);

--'Fitch Places GMAC Mortgage's U.S. Residential Servicer Ratings on Watch Negative', (April 19, 2012);

-- 'Fitch Places Various GMAC-Serviced RMBS on Rating Watch Negative', (April 19, 2012);

--'U.S. RMBS Surveillance Criteria', (Aug. 10, 2012).

Applicable Criteria and Related Research: 'Fitch Maintains Rating Watch Negative on GMAC-Serviced RMBS Oct. 10, 2012

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=691852

U.S. RMBS Surveillance Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=685739

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Fitch Ratings
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Source: Fitch Ratings