S&P Global Ratings on Oct. 17 updated its outlook on Ally Financial Inc. to positive from stable.

S&P Ratings affirmed its BB+ long-term issuer credit rating as well as B short-term issuer credit rating.

The rating agency said the outlook revision reflects improving trends in Ally's profitability and consumer auto net charge-offs while sustaining the strength of its direct banking business.

The research mentioned that S&P Global Ratings could raise the rating if the company maintains its improved level of profitability without taking on more risk.