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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
JUNE 13, 2003
(Date of report; date of
earliest event reported)
COMMISSION FILE NUMBER: 1-3754
GENERAL MOTORS ACCEPTANCE CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 38-0572512
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
200 RENAISSANCE CENTER
P.O. BOX 200 DETROIT, MICHIGAN
48265-2000
(Address of principal executive offices)
(Zip Code)
(313) 556-5000
(Registrant's telephone number, including area code)
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ITEM 5. OTHER EVENTS
On June 13, 2003, Moody's Investors Service, Inc. (Moody's) announced in a press
release that it lowered its ratings on GMAC and GM. A portion of the press
release issued by Moody's follows:
New York, June 13, 2003 -- Moody's Investors Service lowered General Motors
Corporation's (GM) long-term rating to Baa1 from A3, and also lowered General
Motors Acceptance Corp's (GMAC) long-term rating to A3 from A2 and its
short-term rating to Prime-2 from Prime-1. The existing Prime-2 short-term
rating of GM is confirmed. The Rating outlook for both GM and GMAC is negative.
The downgrade of GMAC's ratings reflect the substantial linkages that exist
between it and GM. These ties are both operational and financial. GMAC provides
financing for GM dealers and their customers, and the quality of its portfolio
is influenced by its parent. For instance, the financial and operating health of
GM dealers, and the collateral and residual value of GM vehicles directly and
significantly affect GMAC's performance. Therefore, GMAC's ratings are tied to
its parent's.
GMAC's ratings were downgraded as a result of the downgrades of GM's
obligations. GMAC's operating performance has held up quite well through a
difficult economic environment. The company has recorded successive periods of
record absolute profitability as a result of growth in its auto financing
portfolio, and most of its other businesses have proved to be solid earnings
contributors. The auto financing business' profit margins have come under some
pressure, primarily as a result of higher losses and tighter financing margins.
Losses in the auto portfolio have been most affected by loss severity versus
default frequency, as the used car market remains very weak. Profits in the
mortgage business, on the other hand, have improved as the company enjoys the
benefits of the continuing strong mortgage refinancing market after having
written off a significant amount of mortgage servicing rights in recent years.
GMAC leverage position has become pressured as asset growth has exceeded capital
formation. We expect that GMAC will manage its financial profile and operations
prudently, thus preserving the one rating notch differential between it and GM.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
GENERAL MOTORS ACCEPTANCE CORPORATION
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(Registrant)
Dated: June 13, 2003 /s/ William F. Muir
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William F. Muir
Executive Vice President,
Chief Financial Officer and Director
Dated: June 13, 2003 /s/ Linda K. Zukauckas
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Linda K. Zukauckas
Controller and Principal Accounting Officer