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Fitch takes AmeriCredit off ratings watch

By Associated Press
June 13, 2008 | Comments (0)

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Fitch said it affirmed the credit ratings of auto finance company AmeriCredit Corp. and removed them from its negative ratings watch now that a $2 billion financing agreement has closed.

The ratings service affirmed the company's "BB", or non-investment grade, long-term issuer default and senior debt ratings.

Fitch said the affirmation reflects the company's "solid position" in the auto finance market, the diversification of its portfolio, its experienced management team and its consistent servicing and collections capabilities.

The service said it took the ratings off credit watch because of a $2 billion forward purchase agreement with Deutsche Bank AG. Under the agreement, the bank will buy asset-backed securities in public offerings.

Fitch said the agreement provides "needed liquidity" and confidence in the company's collateral.

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