Fitch Rates Ally Financial's $750MM Subordinated Debt Issuance 'BB'
KEY RATING DRIVERS - SUBORDINATED DEBT
The 'BB' rating reflects the subordinated nature of the debt relative to Ally's senior secured and senior unsecured debt obligations. As a result, the subordinated debt is rated one notch below Ally's Issuer Default Rating (IDR) of 'BB+'.
RATING SENSITIVITIES - SUBORDINATED DEBT
The rating is one notch below Ally's IDR, and therefore would be expected to move in tandem with any change in Ally's IDR. Additionally, the notching between the subordinated debt and the IDR could widen to the extent that Fitch's view of the recovery prospects for the subordinated debt decreased.
Fitch has assigned the following rating:
Ally Financial Inc.
--\\$750 million 5.75% subordinated notes due 2025 'BB'.