Fitch: Ally Financial unchanged

Fitch Ratings said Ally Financial Inc.'s announcement that it has agreed to extend the maturity of its secured debt facility with its wholly owned subsidiary Residential Capital LLC (ResCap) is in line with Fitch's expectation of continued moderate support to ResCap from Ally. The announcement does not affect Fitch's ratings on the company.

However, the agency said it believes the short-term maturity extension could signal a potential resolution of Ally's ownership of ResCap in the near future, possibly including a bankruptcy filing of ResCap.

The agency said it expects ResCap will experience ongoing liquidity pressure as debt maturities continue.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.