| Fitch Put GMAC on Rating Watch Negative
Fitch Ratings on Wednesday said it placed the "BB+" long-term issuer default ratings for GMAC LLC, the financial-services company formerly controlled by General Motors Corp., and its subsidiaries on rating watch negative. Fitch said the review reflects the continuing pressures on the company's residential mortgage subsidiary, Residential Capital LLC, also known as ResCap. Fitch said it expects to complete its review of both GMAC and ResCap in the next four to six weeks. Besides the long-term issuer default rating, Fitch also is reviewing GMAC's "B" short-term issuer default rating, "BB+" senior unsecured rating and "B" short-term debt rating. .
CCHL plans to lift Orion's debt
The ratepayer-owned Christchurch City Holdings, the city's largest company, is looking at taking cash out of its electricity networks company, Orion, which has little debt. Orion is one of six trading companies owned by CCHL. CCHL chief executive Bob Lineham said yesterday having little debt was not efficient for that business and the council was looking at ways to restructure the balance sheet and return capital from Orion to the council. CCHL is the investment and trading arm of Christchurch City Council; along with the six companies it has a smaller stake in a forestry company, Selwyn Plantation Board. The six companies include Orion, Lyttelton Port Co, Christchurch Airport, contractor City Care and Red Bus. CCHL has released its annual report for the year to June 2007 and says it wants to invest in more infrastructure for the city.
Budget draft: Property tax, sewer fee up; council considering manager's proposal
Penn Hills Council is reviewing the municipal manager's proposed 2008 budget that includes a 1-mill property tax increase and a 52 percent residential sewer rate increase. Terry Van Horne, municipal manager, gave council members his budget on Nov. 9. Horne had said his budget would be done by Nov. 8, though the municipal charter requires the manager to complete the budget by Nov. 1. Van Horne's proposed budget would increase the property tax rate from 4.6 to 5.6 mills, which would add about $80 per year to the average tax bill. The tax increase would generate about $1.4 million for the municipality. .
(AFX UK Focus) 2007-11-13 21:48 GMT: Market Spotlight: Credit Card Securities
NEW YORK (AP) - Despite a swoon in the asset-backed securities market, credit card-backed bonds are thriving, as issuers are able to break them up and sell only quality pieces. Asset-backed securities are bonds sold in parts to investors. Each is backed by a pool of different types of assets, ranging from subprime mortgages -- loans given to customers with poor credit history -- or student loans to credit card debt. Typically within each security, there are varying grades of assets rated from the highest of "AAA" down to "B" or lower. Investors have fled from purchasing debt considered high-risk in recent months as more customers default on loans -- especially subprime mortgages given to people with poor credit history -- leaving the asset-backed securities market a shell of its self from earlier in the year.
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