...The stable outlook on Ally Financial Inc. reflects S&P Global Ratings' expectations that, over the next 12 months, Ally's market position in consumer automobile and dealer floorplan finance will remain stable; its credit performance will weaken slightly, in line with the industry (with annualized consumer automobile finance net charge-offs of about 1.2% of average receivables); and its capital adequacy will remain strong, with a risk-adjusted capital (RAC) ratio of 10.5%-11.0%. Although an upgrade is not likely in the next 12 months, we could raise the ratings if the company can further demonstrate a track record of solid credit quality, even as it continues to shift the mix of its consumer originations--particularly toward near-prime loans. We will measure its credit quality, in part, by net charge-offs, which we do not expect to rise meaningfully higher than about 1.2% of consumer automobile average receivables on an annualized basis, taking into account seasonal fluctuations. We would...
