Fitch Rates Bank of New York Mellon Corp.'s Series D Non-Cumulative Perpetual Preferred Stock 'BBB'

NEW YORK--()--Fitch Ratings has assigned a 'BBB' rating to Bank of New York Mellon's Corporation's (BK) $500 million series D non-cumulative perpetual preferred stock. Proceeds from the issuance are for general corporate purposes.

KEY RATING DRIVERS - SUBORDINATED AND OTHER HYBRID SECURITIES

The rating for BK's series D are notched from BK's Viability Rating (VR) of 'AA-', which was affirmed on Feb. 28, 2013 (see press release 'Fitch Affirms U.S. Trust and Processing Bank Ratings Following Industry Peer Review'). The ratings for the series D reflect application of Fitch's criteria for bank hybrid capital instruments and incorporate three notches for non-performance and two notches for loss severity.

RATING SENSITIVITIES - SUBORDINATED DEBT AND OTHER HYBRID SECURITIES

The rating for BK's series D preferred is highly sensitive to BK's VR. To the extent BK's VR were to change, the rating on the series D would also change.

Fitch has assigned the following rating:

Bank of New York Mellon Corporation

--Preferred stock 'BBB'.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research

--'Global Financial Institutions Rating Criteria', Aug. 15, 2012;

--'Assessing and Rating Bank Subordinated and Hybrid Securities', Dec. 5, 2012;

--'U.S. Trust and Processing Banks - In Custody Banks We Trust', March 21, 2013.

Applicable Criteria and Related Research:

Global Financial Institutions Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=686181

Assessing and Rating Bank Subordinated and Hybrid Securities

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=695542

U.S. Trust & Processing Banks - In Custody Banks We Trust

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=703711

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=793369

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Contacts

Fitch Ratings
Primary Analyst
Christopher Wolfe, +1 212-908-0771
Managing Director
Fitch Ratings Inc.
One State Street Plaza
New York, NY 10004
or
Secondary Analyst
Joseph Scott, +1 212-908-0624
Senior Director
or
Committee Chairperson
Joo-Yung Lee, +1 212-908-0560
Managing Director
or
Media Relations:
Brian Bertsch, +1 212-908-0549
brian.bertsch@fitchratings.com

Contacts

Fitch Ratings
Primary Analyst
Christopher Wolfe, +1 212-908-0771
Managing Director
Fitch Ratings Inc.
One State Street Plaza
New York, NY 10004
or
Secondary Analyst
Joseph Scott, +1 212-908-0624
Senior Director
or
Committee Chairperson
Joo-Yung Lee, +1 212-908-0560
Managing Director
or
Media Relations:
Brian Bertsch, +1 212-908-0549
brian.bertsch@fitchratings.com