DBRS on May 2 upgraded the issuer and long-debt rating ofAlly Financial Inc. toBBB (low) from BB (high).
The rating agency cited Ally's leading position in the U.S.auto finance market and its direct banking franchise. DBRS also said thecompany continues to strengthen the earnings capacity generated from thefranchise, and its balance sheet remains strong.
The trend on the rating is stable. The agency expects thecompany to post solid operating performance in 2016, although it projects ashift in the operating environment, including normalizing credit costs and usedvehicle values, and potentially higher interest rates.