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Strategies & Market Trends : The Thread Formerly Known as No Rest For The Wicked -- Ignore unavailable to you. Want to Upgrade?

To: Jane4IceCream who wrote (42874)	5/19/1999 9:40:00 PM
From: Tim Luke	Respond to of 90042

May 19, 1999 17:57 Fitch IBCA affirms ContiFinancial Corp (Press release provided by Fitch IBCA) NEW YORK, May 19 - The B+' senior debt rating of ContiFinancial Corp. has been affirmed by Fitch IBCA. The RatingAlert implication is revised to evolving from negative, where the ratings were initially placed on Feb. 16, 1999. Approximately $700 million in outstanding senior debt is affected. The RatingAlert change is in response to ContiFinancial's announcement that it has tentatively agreed to be acquired by Residential Funding Corp. (RFC), the mortgage unit of General Motors Acceptance Corp. (GMAC), which in turn is the finance subsidiary of General Motors Corp. (GM). Terms of the acquisition have yet to be worked out. The A' senior debt and F1' commercial paper ratings of GM and GMAC are affirmed, and are not on RatingAlert. RatingAlert evolving by Fitch IBCA indicates that the future direction of the rating is uncertain. If an acquisition by RFC is completed, ContiFinancial's ratings will likely be raised due to the benefit received from the financial resources of GMAC. Without this acquisition or some other significant capital transaction, ContiFinancial's ratings will be lowered, as Fitch IBCA believes the company will be challenged to renegotiate existing committed credit facilities that mature on Aug. 20, 1999. If the credit facilities cannot be extended, the company would be subjected to significant liquidity constraints.