Ally Financial Corp. could eventually see Standard & Poor’s raise its long- and short-term counterparty credit ratings now that the lender has finally shielded itself from liabilities stemming from its former subsidiary, Residential Capital.

S&P Ratings Services put these particular ratings on Positive Credit Watch, meaning there’s potential for the ratings to be lifted a notch in the near future.

ResCap was put into bankruptcy reorganization after the mortgage bust, prompting Ally Financial to stage a gradual exit from mortgage lending space with a refocus on auto finance.

Still, legal liabilities stemming from mortgage securitization deals tied to Ally’s former ResCap unit lingered, creating some tail end risk.

However, S&P say a deal struck between ResCap and its former parent firm this week resolved the issue.

The latest deal is a type of shield, releasing Ally from any claims that could be brought by ResCap over allegations tied to representation and warranty issues related to mortgages.

It also blocks Ally from claims brought by third parties, other than securities claims by the Federal Housing Finance Agency (FHFA) and the Federal Deposit Insurance Corporation (FDIC).

The long and short-term counterparty credit ratings are currently listed at B+ and C for Ally Financial, S&P said.