NEW YORK--(BUSINESS WIRE)--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
ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.