DBRS Downgrades Residential Capital, LLC to “D” After Announcement of Bankruptcy Filing

DBRS, Inc. (DBRS) has today downgraded the ratings of Residential Capital, LLC (ResCap or the Company), including its Issuer and Long-Term Debt ratings to ‘D’ from ‘C’. Concurrently, the Company’s Short-Term Debt rating has been downgraded to ‘D’ from R-5. All ratings have been removed from Under Review with Negative Implications, where they were placed on April 18, 2012.

Today’s rating action follows ResCap’s announcement today that it has filed a bankruptcy petition under Chapter 11 of the U.S. Bankruptcy Code. As such, the downgrade to ‘D’ for all instruments is in accordance with DBRS Rating Policy.

Note:
All figures are in U.S. dollars unless otherwise noted.

The applicable methodology is Rating Finance Companies Operating in the United States, which can be found on the DBRS website under Methodologies.

The sources of information used for this rating include publicly available company documents. DBRS considers the information available to it for the purposes of providing this rating was of satisfactory quality.

Lead Analyst: Steven Picarillo
Rating Committee Chair: Alan G. Reid
Initial Rating Date: 9 June 2005
Most Recent Rating Update: 18 April 2012