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BULLETIN: AmeriCredit Corp. Announces Completion of Equity Issuance Sep 02
Standard & Poors, Sep 2002
Abstract
AmeriCredit Corp.'s (BB-/Stable/--) announced completion of a $500 million equity issuance is viewed by Standard & Poor's as a positive development. The net proceeds from the common stock offering will be used to provide a greater portion of the up-front credit enhancement required on future securitizations, and could increase to as high as 12%. By making a larger up-front deposit on a transaction, the company would shorten the time until it would begin receiving cash from the deals. By slowing its current $2.4 billion rate of originations growth per quarter, AmeriCredit will be able to preserve cash and enhance its liquidity position. However, Standard & Poor's continues to remain concerned about potential deterioration in asset quality metrics in this weak...
Companies mentioned in this report are: General Motors Financial Co. Inc.
Action: S&P Event
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: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.
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