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DCR Rates General Motors Acceptance Corporation's Y20 Billion Samurai Bond Offering 'A-'

16 October 1997

DCR Rates General Motors Acceptance Corporation's Y20 Billion Samurai Bond Offering 'A-'

    CHICAGO, Oct. 16 -- Duff & Phelps Credit Rating Co. (DCR)
has assigned an 'A-' (Single-A-Minus) rating to General Motors Acceptance
Corp.'s (GMAC) Y20 billion samurai bond offering.  The bonds have a
coupon of 3.20 percent, are priced at 100.00, and mature on July 30, 2001.
    GMAC's ratings reflect its close marketing and financial ties with
parent General Motors Corp. (GM) and GMAC's typically strong asset quality
and profitability measures. GM's restructuring efforts are critical to its
ongoing efforts to achieve a leaner cost structure and more effective product
line strategy.
    DCR will continue to monitor workplace reception of GM`s new model
introductions. Due to the continued growth in the retail operating lease
portfolio and the partial residual risk borne by GM, DCR believes the
credit rating relationship between GM and GMAC has been strengthened.
    First half 1997 earnings were $710 million, versus $659 million for the
first half of 1996.  This increase was due to solid performance from
financing operations combined with strong results from insurance
operations attributable to improved claim performance.  Retail finance
volumes will remain partly dependent on GM`s sales volumes and incentives.
    Retail asset quality measures have eased somewhat following the strong
industrywide performance in recent years. In response, management has
tightened credit standards on new originations and instituted more
aggressive collections efforts. These strategies are expected to stabilize
credit quality. DCR continues to monitor the impact of rising personal
bankruptcy filings on the consumer finance industry.
    Leverage has increased slightly due to the improved cost of balance
sheet debt relative to securitization funding.  Leverage is now targeted
in the 9-to-10:1 range.  Bank facilities limit leverage to 11:1.

SOURCE  Duff & Phelps Credit Rating Co.