General Motors Acceptance Corp., completed last week a $2.5 billion auto ABS with an unusual feature: a below investment grade rated D-tranche via Credit Suisse First Boston, Lehman Brothers and SG Corporate & Invest-ment Banking, The $25.9 million D tranche of GMAC's Capital Auto Receivables Asset Trust 2004-2, was rated double-B and double-B plus by Standard & Poor's and Fitch Ratings, respectively. Moodys Investors Service, however, rated each tranche except the D-tranche. A Moodys spokesperson declined to comment on why it did not rate the tranche.
The deal represents the first time GMAC has ever offered a structured financing with triple and double-B rated tranches. A market source said the lower rated tranches are likely to become a fixture of GMAC's future ABS deals. The market has only seen double-B rated auto paper in each of the Bear Stearns Whole Auto Loan Trust vehicle offerings of the last three years. Ford Motor Credit has structured to the triple-B level.