Fitch places AmeriCredit on rating watch
By APFriday, July 23, 2010
Fitch places AmeriCredit on rating watch
NEW YORK — Fitch Ratings placed AmeriCredit Corp. on rating watch Friday, one day after General Motors said it would acquire the subprime auto lender.
GM said it would spend $3.5 billion in cash for AmeriCredit, a Fort Worth, Texas, company with 800,000 customers and a $9 billion portfolio of loans. The deal is expected to close in the fourth quarter.
The buyout will affect about $532.6 million of AmeriCredit debt. The company currently holds a long-term issuer default rating of “B+” and a senior debt rating of “BB/RR3.”
Fitch said it will now analyze GM’s credit profile, saying AmeriCredit’s ultimate rating will be affected by the strength or weakness of GM.
Shares of AmeriCredit rose 8 cents to $23.99
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