DBRS Rates Ally Financial Inc.’s $750 million Issuance of Senior Notes at BBB (low), Positive

DBRS, Inc. (DBRS) assigned a rating of BBB (low) to the $750.0 million 3.875% Senior Notes due May 21, 2024 (the Notes), issued by Ally Financial Inc. (Ally or the Company). The trend on the Notes is Positive. The proceeds from the issuance of the Notes will be placed in the general funds of Ally and are available for general corporate purposes.

The Positive trend considers the Company’s improving earnings generation ability and strong auto lending and on-line deposit franchises. The trend also considers the strengthening funding profile that has become more deposit oriented. Finally, the Positive trend reflects an eventual shift in the current credit cycle and associated normalization of credit quality.

DBRS notes that sustained solid earnings generation without a material increase in the Company’s risk profile, while maintaining sound balance sheet fundamentals would likely result in a ratings upgrade. Conversely, a material decline in core profitability metrics or significant erosion in credit quality, could result in a return to Stable trend.

Notes:
All figures are in U.S. dollars unless otherwise noted.

The applicable methodology is the Global Methodology for Rating Banks and Banking Organisations (July 2018), which can be found on our website under Methodologies.

The primary sources of information used for this rating include company documents and SNL Financial. DBRS considers the information available to it for the purposes of providing this rating was of satisfactory quality.

For more information on this credit or on this industry, visit www.dbrs.com.

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