GMAC-TCFC Finance gets AAA

The AAA (FSO) (triple A foreign structured obligation) rating assigned to the Rs. 50 crore non-convertible debenture programme, guaranteed by General Motors Acceptance Corporation (GMAC), of the U.S., and the P1 plus (pronounced P1 plus) rating assigned to the Rs. 10 crore short term debenture programme of GMAC-TCFC Finance (GMAC-TCFC) have been reaffirmed.

The rating centrally factors in the international parentage of GMAC-TCFC and the support provided by General Motors India (GMIL).

Nevertheless, GMAC-TCFC also faces the challenge of sustaining the growth in the retail car financing business, continued containment of risk in the dealer financing and retail car financing business and enhancing profitability in an intensely competitive business environment.

MAC-TCFC, which commenced operations in January 1998 with a paid- up capital of Rs. 40 crores, is primarily involved in financing of cars, both in terms of retail and wholesale financing (restricted to dealers of GMIL). For the year ended March 31, 2001 (unaudited), the company reported a total income of Rs. 51.52 crores and a profit after tax of Rs. 2.005 crores on funds deployed of Rs. 347.30 crores, thus showing a growth of 64 per cent and 11 per cent respectively in terms of total income and profit after tax over the corresponding period of the previous year.

GMAC, the U.S.-based parent of GMAC-TCFC, is a wholly-owned subsidiary of General Motors Corporation (GM), having an A rating from Standard & Poor's (S&P). GMAC and GM are regarded by S&P as being part of a single economic entity, given the strategic importance of the two legal entities to each other. GMAC is among the largest non-banking finance companies of the world with total assets of $168,410 million as of December 2000. For the year ended December 2000, GMAC reported revenues of $23,661 million and a net income of about $1,602 million. Globally, in terms of geographic distribution, GMAC's automotive finance operations broadly parallel GM's automotive business.

- Corporate Bureau

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Section  : Business
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