Ally Financial Inc.'s Series B Preferred Stock Rated 'BB-'

NEW YORK (S&P Global Ratings) April 20, 2021--S&P Global Ratings today assigned a 'BB-' rating to Ally Financial Inc.'s public offering of $1.35 billion aggregate principal amount of its 4.7% fixed-rate reset noncumulative perpetual preferred stock, series B. The rating on the preferred stock is four notches lower than the company's stand-alone credit profile of 'bbb', based on deferral risk and the issue's subordination to Ally's existing and future subordinated and senior debt. Ally intends to use the net proceeds from the offering to redeem its trust preferred securities. We view Ally's preferred stock issuance somewhat favorably given that it would boost the company's capital ratios, by our measure. We classify the preferred issuance as having intermediate equity content and

...April 20, 2021 NEW YORK (S&P Global Ratings) April 20, 2021--S&P Global Ratings today assigned a '##-' rating to Ally Financial Inc.'s public offering of $1.35 billion aggregate principal amount of its 4.7% fixed-rate reset noncumulative perpetual preferred stock, series B. The rating on the preferred stock is four notches lower than the company's stand-alone credit profile of '###', based on deferral risk and the issue's subordination to Ally's existing and future subordinated and senior debt. Ally intends to use the net proceeds from the offering to redeem its trust preferred securities. We view Ally's preferred stock issuance somewhat favorably given that it would boost the company's capital ratios, by our measure. We classify the preferred issuance as having intermediate equity content and include it in our calculation of total adjusted capital, which is the numerator in our risk-adjusted capital (RAC) ratio. We estimate that this preferred issuance will add approximately 100 basis...

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