S&P lifts Ally to positive

Standard & Poor's said it revised the outlook on Ally Financial Inc. to positive from stable.

The agency also said it affirmed the company's B+ long-term counterparty credit rating and C short-term rating.

The outlook revision reflects a view of potentially favorable implications for Ally's credit profile arising from measures the company recently announced that are designed to resolve issues relating to Residential Capital LLC, Ally's troubled mortgage subsidiary, S&P said.

These measures included the prearranged voluntary Chapter 11 bankruptcy filing covering Residential Capital and its subsidiaries, the agency said.

If adopted, the filing's restructuring plan would address uncertainties associated with legal claims on ResCap and Ally relating to the performance of mortgage securitization transactions sold from 2004 to 2008, S&P said.

Ally is taking other steps - primarily the sale of its international operations - that will enable it to continue repayment of U.S. Treasury funding provided to Ally in 2008 and 2009, the agency said.

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