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Home » Store » News » GM Ties Spell Lower Debt Ratings for ResCap Unit

GM Ties Spell Lower Debt Ratings for ResCap Unit

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The mortgage units of General Motors could face higher borrowing costs in the months ahead, as two rating agencies have given the restructured units artificially low ratings that reflect their ties to the troubled automaker. In rating actions announced last week, both Standard and Poor’s and Fitch Ratings said that their ratings of Residential Capital Corp., a holding company formed by GM last month for its GMAC Mortgage and Residential Funding Corp. units, would…
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