NEW YORK--(BUSINESS WIRE)--Fitch Ratings has assigned a 'B+' rating to Ally Financial Inc.'s $2.67 billion trust preferred securities, series 2 issued out of GMAC Capital Trust I. The underlying junior subordinated securities are cumulative, contain a five-year optional deferral mechanism which is subject to the prior approval of the Federal Reserve, and rank senior to existing preferred equity and common equity securities.
The trust preferred securities were originally issued by Ally Financial Inc. to the U.S. Treasury as a part of the capital purchase plan on Dec. 30, 2009. The proceeds from the series 2 issuance will be used solely to repay the U.S. Treasury.
This rating action does not constitute a full review of Ally and its subsidiaries and therefore does not address every aspect of Fitch's rating criteria.
Fitch assigns the following rating:
GMAC Capital Trust I
--Trust Preferred Securities, Series 2 'B+'.
Additional information is available at www.fitchratings.com
Applicable Criteria and Related Research :
--'Global Financial Institutions Rating Criteria' (Aug. 16, 2010);
--'Rating Hybrid Securities', dated Dec. 29, 2009.
Applicable Criteria and Related Research:
Global Financial Institutions Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=547685
Rating Hybrid Securities
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=493086
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