FINANCIAL INSTITUTIONSISSUER COMMENT 11 MAY 2015ALLY FINANCIAL INC. (ALLY)Moodys Senior Unsecured Rating B1Moodys Outlook POSBond-Implied Rating Ba1CDS-Implied Rating Ba2EDF-Implied Rating Ba1As of 5/8/2015ANALYST CONTACTSAllerton G. Smith 212-553-4058 Sr Dir-Sr Research Analyst allerton.smith@moodys.comABOUT CAPITAL MARKETS RESEARCHAnalyses from Moodys Capital Markets Research, Inc. (CMR) focus on explaining signals from the credit and equity markets. The publications address whether market signals, in the opinion of the groups analysts, accurately reflect the risks and investment opportunities associated with issuers and sectors. CMR research thus complements the fundamentally-oriented research offered by Moodys Investors Service (MIS), the rating agency.CMR is part of Moodys Analytics, which is one of the two operating businesses of Moodys Corporation. Moodys Analytics (including CMR) is legally and organizationally separated from Moodys Investors Service and operates on an arms length basis from the ratings business. CMR does not provide investment advisory services or products.View the CMR FAQ Contact the CMR team Follow us on TwitterMoodys Analytics markets and distributes all Moodys Capital Markets Research, Inc. materials. Moodys Capital Markets Research, Inc. is a subsidiary of Moodys Corporation. Moodys Analytics does not provide investment advisory services or products. For further detail, please see the last page.Market Signals ReviewAlly Financial's Market Signals Were Idiosyncratic Over the Year The bond-implied rating for Ally Financial Inc. varied within a narrow band over the last year. The CDS-implied rating dipped a bit. The EDF'-implied rating is up two notches.FIGURE 1. ALLY: MOODYS AND MARKET IMPLIED RATINGS - LAST 12 MONTHS (DAILY DATA)The bond-implied rating was Ba1 on May 8, 2014 (Figure 1). It dropped on multiple occasions to Ba2 for several days, but has resettled at the Ba1 level.The CDS-implied rating followed a slightly less encouraging track. Exactly 12 months ago it was Ba1 and, like the bond-implied rating, fell to Ba2 for several days over the last year. However it has declined to Ba2 at present and has not rebounded to the Ba1 level.MOODY'S ANALYTICS FINANCIAL INSTITUTIONS2 11 MAY 2015 MARKET SIGNALS REVIEW : ALLY FINANCIAL'S MARKET SIGNALS WERE IDIOSYNCRATIC OVER THE YEARSince September 2014, the EDF-implied rating has varied from a high of Baa3 to a low of Ba2. It currently is Ba1, matching its level of last September 15, and improved from Ba3 one year ago.The bond-implied ratings gap is +3 notches, the same as a year ago (Figure 2). Over the last 12 months it has been as low as +2 notches on several dates. The CDS-implied ratings gap has worsened from +3 notches a year ago to +2 notches. The EDF-implied ratings gap is +3 notches today, one notch below its +4 notch apex and one notch above its +2 notch nadir of the year.FIGURE 2. ALLY: MOODYS AND MARKET ...
