Fitch rates Ally Financial notes BB+

Fitch Ratings said it assigned a BB+ rating to Ally Financial Inc.'s $750 million 3 7/8% senior unsecured notes due May 21, 2024.

The proceeds will be used for general corporate purposes.

Fitch said it does not expect the issuance to have a meaningful impact on Ally's leverage and capitalization ratios or its longer-term funding mix targets.

The rating is equalized with the ratings assigned to Ally's existing senior unsecured debt, as the new notes will rank equally in the capital structure, the agency said.

The alignment of the unsecured debt rating with that of the long-term issuer default rating reflects solid unencumbered collateral coverage, Fitch said.

The company's existing ratings reflect its strong franchise, leading market position in the U.S. auto finance industry, solid credit quality, diverse funding base and ample liquidity, the agency said.

The ratings are constrained by its weaker profitability and higher usage of wholesale funding sources relative to more highly rated bank peers, Fitch said.

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