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AmeriCredit Corp. Jul 09
Standard & Poors, July 2009
Abstract
Meaningful market share in subprime automobile lending Lower leverage Concentration in subprime automobile lending Reliance on asset-backed securities (ABS) markets for funding Encumbered balance sheet Standard & Poor's Ratings Services' ratings on AmeriCredit Corp. reflect the company's concentration in subprime auto lending, reliance on the ABS markets for funding, and encumbered balance sheet. Other considerations include AmeriCredit's meaningful market share in subprime automobile lending and lower leverage. AmeriCredit's concentration in subprime auto financing is a negative ratings factor, given that the credit quality of these loans is highly vulnerable to economic cycles. We expect that AmeriCredit's asset quality will continue to deteriorate, particularly since consumer credit losses generally correlate to unemployment, which we expect to exceed 10% in the U.S....
Companies mentioned in this report are: General Motors Financial Co. Inc.,Leucadia National Corp.,Deutsche Bank
Action: Review
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Full Analysis
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