Ally Financial Inc.

The stable outlook reflects S&P Global Ratings' expectation that while Ally's credit losses and charge-offs will likely increase in 2023, the company is well positioned to absorb the impact of an economic slowdown, including a potential moderate recession. We also expect Ally's auto finance and direct banking operations' earnings to remain under pressure but resilient in the next two years, and we expect its capital ratios will maintain sufficient buffers, including a risk-adjusted capital (RAC) ratio of 7%-10%. We could lower the ratings if Ally's asset quality deteriorates substantially beyond anticipated or if its risk appetite increases. We could also lower the ratings if Ally's capital ratios decline, most notably if its common equity Tier 1 (CET1) ratio dips below

...Ally remains concentrated in auto lending. Its auto financing segment accounted for 75% of total on-balance-sheet loans (about 87% to retail consumers) and a similar portion of total net revenue for the nine months ended Sept. 30, 2022. Mortgage loans and nonauto corporate finance made up the vast remainder of the portfolio. Therefore, we believe the bank's performance will remain significantly affected by trends in the auto and auto finance industries as well as consumer health....

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