...Market Leader in Auto Finance: Ally's Long-Term Issuer Default Rating (IDR) of 'BBB-' is based on the holding company's intrinsic creditworthiness as reflected in its Viability Rating (VR). The Stable Outlook reflects Fitch Ratings' expectations of stabilizing profitability and credit performance. Strong Competitive Position: Ally's business profile is supported by a strong franchise, leading market position in the U.S. auto finance industry, diverse funding sources, sufficient liquidity, and adequate risk-adjusted capitalization. Ally's ratings are constrained by its concentration in auto finance, which is prone to consumer and industry cyclicality, and its historically weaker profitability ratios relative to its peers. Prudent Risk Management: While Ally has experienced above-average credit costs following pandemic-related market distortions, the two-year weighted average duration of its auto loan portfolio diminishes the impact of a single vintage over the medium term. Ally hedges its...
