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GMAC $1.0B SmartNotes Shelf Rated 'A' By Fitch IBCA - Fitch IBCA Financial Wire -

25 March 1998

GMAC $1.0B SmartNotes Shelf Rated 'A' By Fitch IBCA - Fitch IBCA Financial Wire -

    NEW YORK, March 25 General Motors Acceptance Corp.'s (GMAC)
SmartNotes $1.0 billion shelf registration is rated 'A' by Fitch IBCA. The
notes will be senior unsecured obligations of GMAC, a wholly owned subsidiary
of General Motors Corp. (GM).
    The ratings reflect improved fundamentals of the parent, strong
penetration into GM's retail business, solid links to GM's dealer network,
prudent balance sheet management, flexible funding and increased earnings
contribution from the expanding commercial and residential real estate
servicing portfolio. Ratings concerns include higher historical retail auto
chargeoffs and delinquencies, net interest margin pressure resulting from
increased competition, uncertainties related to residual values in the leasing
portfolio and risks related to expansion into the subprime auto business.
    GMAC's ratings are closely linked to the performance of its parent. GM has
improved its financial performance through efforts to lower its structural
costs, gain efficiencies of scale and align capacities worldwide.
    GMAC's primary purpose is to provide retail and wholesale financing for GM
products. At year end 1997, managed automotive receivables totaled
$98.7 billion, up from $94.2 billion at the end of 1996. The company's asset
quality has improved after a decline caused by relaxed underwriting standards
in 1994 and 1995. GMAC's net chargeoffs have leveled off at 1.07% of average
managed receivables at Dec. 31, 1997, after increasing to 1.17% at the end of
1996 from 0.63% at the end of 1994.
    GMAC has diversified its operations by growing its commercial and
residential loan servicing portfolio. GMAC Mortgage Group, a wholly owned
subsidiary of GMAC, has actively built its portfolio through originations as
well as acquisitions. The portfolio has grown from $59 billion in 1994 to
$143.6 billion at year end 1997. The group contributed 12.8% of earnings at
Dec. 31, 1997, up from 5.6% at the end of 1995.
    Other operations at GMAC include automotive and non-automotive related
insurance offered through Motor Insurance Corp. (MIC), nonstandard automobile
insurance provided by Integon and subprime auto lending through Nuvell Credit
Corp.

SOURCE  Fitch IBCA, Inc.