...January 22, 2025 NEW YORK (S&P Global Ratings) Jan. 22, 2025--S&P Global Ratings today said that Ally Financial Inc.'s (###-/Stable/A-3) announced sale of its credit cards business and decision to cease new mortgage originations end the company's strategy for future diversification. In our view, this revised approach should help Ally maintain sufficient regulatory capital buffers, especially given the risk of potential additional regulatory capital requirements (e.g. future recognition of accumulated other comprehensive income [AOCI]). Ally's increased business concentration may further limit any potential upgrade. Our ratings already reflect the bank's high concentration in auto lending (about 80% of total on-balance-sheet loans with an even higher portion of total net revenue if considering auto-related insurance as of year-end 2024), which exposes Ally predominantly to trends in the auto and auto finance industries. In addition, a lack of a full spectrum of consumer products will likely...
