S&P Global Ratings upgraded Ally Financial Inc.'s long-term issuer credit and unsecured debt ratings to BBB- from BB+. The outlook on the long-term rating is stable.

The upgrade is based on the increased resilience of Ally's auto finance business, significant growth of its deposits and direct banking customer base and improved profitability, the rating agency said.

The outlook reflects Ratings expectation that the company's auto finance and direct banking operations will remain resilient in the next two years through economic and interest rate cycles and that its capital ratios will remain adequate after CECL adoption, including a risk-adjusted capital ratio at the lower end of the 7% to 10% range.

This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.