Summary: Ally Financial Inc.

Significant deposit funding and prudential regulatory oversight Strong capital adequacy Concentration in vehicle finance High double leverage at the holding company The stable outlook reflects S&P Global Ratings' expectation that Ally Financial Inc. will maintain its market position and disciplined underwriting amid weakening credit conditions in vehicle finance. We expect that annualized consumer auto charge-offs will be 1.4%-1.6% and that Ally will maintain a risk-adjusted capital (RAC) ratio of 10.0%-11.0%. We could consider an upgrade over the next 12-24 months if Ally improves profitability and maintains deposit stability in the face of rising interest rates and consumer auto net charge-offs of 1.4%-1.6%. Also, we would expect Ally to maintain 18 months coverage of unsecured debt maturities at the holding company

...The stable outlook reflects S&P Global Ratings' expectation that Ally Financial Inc. will maintain its market position and disciplined underwriting amid weakening credit conditions in vehicle finance. We expect that annualized consumer auto charge-offs will be 1.4%-1.6% and that Ally will maintain a risk-adjusted capital (RAC) ratio of 10.0%-11.0%. We could consider an upgrade over the next 12-24 months if Ally improves profitability and maintains deposit stability in the face of rising interest rates and consumer auto net charge-offs of 1.4%-1.6%. Also, we would expect Ally to maintain 18 months coverage of unsecured debt maturities at the holding company with cash and unencumbered highly liquid securities, and to significantly reduce double leverage. We could lower the ratings over the next 12-24 months if capital adequacy unexpectedly weakens, with a RAC ratio that drops below 10.0%, whether due to capital management actions, growth in risk-weighted assets, rising credit losses, or other...

Summary