S&P rates Ally Financial notes BB+

S&P said it assigned a BB+ senior unsecured debt rating on Ally Financial Inc.'s proposed issuance of senior notes due 2024.

The proceeds will be used for general corporate purposes.

The ratings reflect the company's status as a bank holding company with its strong capital adequacy, S&P said.

These strengths are partially offset by a loan portfolio that is largely concentrated in auto finance, which makes it more vulnerable to a downturn in auto sales or credit performance than more diversified financial institutions, the agency said.

Ally has access to central bank funding through its Ally Bank subsidiary and is subject to a high degree of prudential regulation viewed as supportive of creditworthiness, S&P said.

But it has a high proportion of non-deposit funding relative to most traditional banks, the agency said.

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