GMAC-RFC tested the European waters last week, pricing its first securitization issue following the downgrade of its parent company by Moody's Investors Service and Standard & Poor's to junk status earlier in the month. Fitch Ratings last week slashed General Motors and GMAC ratings to junk status.
Dealers upsized GMAC-RFC's U.K. RMBS deal, RMAC 2005 NSP-2, from GBP1 billion to GBP1.1 billion ($1.82 billion to $2 billion) based on strong demand. All tranches priced within guidance levels. Tranching consists of three currencies - euro, dollar and sterling - for the 0.86-year and 3.27-year A class, which priced at nine and 22 basis points respectively over Libor, across all currencies. The sterling and euro denominations for the 4.26-year class M tranches - GBP50 million-equivalent of double-A rated notes and GBP47 million-equivalent single-A rated notes - priced at 31 and 50 basis points over Libor. The euro and sterling denominated Class B tranches came in at 80 basis points. Within the pool, 2.45% were buy-to-let, 9.1% right-to-buy, 48.7% self-certified and 14.0% of borrowers had at least one CCJ. The pool also included 36.9% of prime or near-prime loans. The provisional pool had a weighted average 75.3% LTV and four months of seasoning. On the break, the senior A2 tranche was 100.03 bid, said analysts at the Royal Bank of Scotland.