GMAC Prices Auto Loan Securitization

GMAC Mexicana has priced MXP1.5bn in 2010 bonds backed by loans to Mexican GM dealers, at 28-day TIIE plus 200bp. The transaction represents the first auto loan securitization in Mexico, according to GMAC officials, and is a replication of a structure used in the US where bonds are backed by financing that dealers use to purchase vehicles from GM. The deal was oversubscribed, according to the issuer, and it was placed mainly with Mexican insurance companies, wealth managers and mutual funds. No official price guidance was issued, but the level was in line with expectations developed during an August roadshow, officials on it say. Scotia managed the transaction, rated AAA on a national scale. Separately, Moody’s downgraded GMAC Financiera as a master servicer of residential mortgages to SQ2 minus from SQ2 and put it on review for possible downgrade. “The financial and operating problems faced by ResCap and GMAC LLC, parent companies in the US, negatively affects the operating conditions of GMAC Financiera,” says the agency.