Fitch Ratings upgraded Ally Financial Inc.'s long-term and short-term issuer default ratings and affirmed ratings of American Express Co., Discover Financial Services and Synchrony Financial as part of Fitch's periodic review of U.S. consumer finance companies.
The ratings outlook for Ally was revised to stable from positive. The ratings outlook for American Express, Discover Financial Services and Synchrony Financial is stable.
Fitch credited Ally's continued progress in improving its funding profile with retail deposit funding at 72% of total funding as of June 30, stable credit performance and expected improvements in profitability in upgrading the ratings. The rating agency also pointed out the company's leading position in the auto finance market, seasoned management and ample liquidity, among other things, in rating the company. Ally's long-term issuer default rating was upgraded to BBB- from BB+ and its short-term rating was upgraded to F3 from B.
The rating agency affirmed American Express' long-term issuer default rating at A and short-term issuer default rating at F1. Fitch credited American Express' strong position in consumer and commercial payments, superior credit performance compared with is peers and consistent profitability, among other things, in affirming the ratings.
Fitch affirmed Discover's long-term issuer default rating at BBB+ and a short-term issuer default rating at F2. The rating agency pointed out Discover's solid credit performance, strong franchise, which is supported by its payments network, and consistent strong financial performance in various economic cycles in affirming the ratings.
In affirming Synchrony's long-term issuer default rating at BBB- and short-term issuer default rating at F3, Fitch pointed out the company's capitalization and liquidity levels, increased funding diversity due to strong deposit growth in Synchrony Bank and consistent operating performance.
