Fitch Affirms Ally Financial's IDR at 'BB+'; Outlook Stable

NEW YORK--()--Fitch Ratings has completed a peer review of three rated consumer finance companies and their related entities. Based on this review, Fitch has affirmed the long-term Issuer Default Ratings (IDR) of Ally Financial at 'BB+', with a Stable Outlook. See the full list of ratings at the end of this release.

Fitch recently upgraded Ally's long-term IDR and today's action reflects Fitch's annual consumer finance peer review, which Ally is part of. Please see the ratings action commentary published on April 1, which is available at www.fitchratings.com, for additional details on the upgrade.

RATING SENSITIVITIES

Fitch's Stable Outlook reflects the view that positive rating momentum is limited over the next 12-24 months. Longer term, however, positive ratings momentum could potentially be driven by further improvements in profitability and operating fundamentals, measured growth in the currently competitive lending environment, and additional actions to further enhance funding and liquidity sources while maintaining strong capital levels at both the parent and operating company levels. In particular, durability of the Internet-based deposit platform in a rising rate environment will be a key determinant in evaluating the strength of Ally's funding profile.

A material decline in profitability or asset quality, reduced capital and liquidity levels, an inability to access the capital markets for funding on reasonable terms, and potential new and more onerous rules and regulations are among the drivers that could generate negative rating momentum.

Fitch has affirmed the following ratings:

Ally Financial Inc.

--Long-term IDR at 'BB+';

--Senior unsecured debt at 'BB+';

--Viability rating at 'bb+';

--Perpetual preferred securities, series A at 'B';

--Short-term IDR at 'B';

--Short-term debt at 'B';

--Support rating at '5';

--Support Floor at 'NF'.

GMAC Capital Trust I

--Trust preferred securities, series 2 at 'B+'

The Rating Outlook is Stable.

Additional information is available on www.fitchratings.com

Applicable Criteria and Related Research:

Global Financial Institutions Rating Criteria (January 2014)

Finance and Leasing Companies Criteria (December 2012)

U.S. Bank HoldCos & OpCos: Evolving Risk Profiles (March 2014)

FinCo Deposit Sensitivity to Rising Rates (January 2014)

Nonbank Financial Institution Interest Rate Sensitivity (January 2014)

3Q13 U.S. Bank Capital Ratios (December 2013)

2014 Outlook: U.S. Finance and Leasing Companies (November 2013)

Fitch Fundamentals Index - U.S. (October 2013)

U.S. Auto Asset Quality Review: 2Q13 (August 2013)

Applicable Criteria and Related Research:

Global Financial Institutions Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=732397

U.S. Auto Asset Quality Review: 2Q13

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=715698

The Fitch Fundamentals Index (Technical Details and Considerations)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=719500

2014 Outlook: U.S. Finance and Leasing Companies (Strong Fundamentals, But Sector Headwinds Persist)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=722839

3Q13 U.S. Bank Capital Ratios

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=726621

Nonbank Financial Institution Interest Rate Sensitivity

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=723766

FinCo Deposit Sensitivity to Rising Rates

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=726196

U.S. Bank HoldCos & OpCos: Evolving Risk Profiles

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=742096

Finance and Leasing Companies Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=696720

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=827112

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Contacts

Fitch Ratings, Inc.
Primary Analyst
Brendan Sheehy, +1-212-908-9138
Director
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Secondary Analyst
Mohak Rao, CFA, +1-212-908-0559
Director
or
Committee Chairperson
Christopher Wolfe, +1-212-908-0771
Managing Director
or
Media Relations
Brian Bertsch, +1-212-908-0549
brian.bertsch@fitchratings.com

Contacts

Fitch Ratings, Inc.
Primary Analyst
Brendan Sheehy, +1-212-908-9138
Director
Fitch Ratings, Inc.
One State Street Plaza
New York, NY 10004
or
Secondary Analyst
Mohak Rao, CFA, +1-212-908-0559
Director
or
Committee Chairperson
Christopher Wolfe, +1-212-908-0771
Managing Director
or
Media Relations
Brian Bertsch, +1-212-908-0549
brian.bertsch@fitchratings.com