General Motors, the parent company of GMAC RFC, says it is exploring the possible sale of a controlling interest in the finance company to a strategic partner.
At this stage, GM is remaining tight-lipped as to who it is in negotiations with. The goal of the sale, according to GM, is to restore GMAC’s investment grade rating in order to renew the lender’s access to low-cost financing. In a statement issued last night in the US, GM states: GMAC said it will continue to evaluate strategic and structural alternatives to help ensure that its residential mortgage business, Residential Capital Corp, or ResCap, retains its investment grade credit ratings.” Mortgage operations at GMAC earned a record $408m in the third quarter of 2005, up from th...
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