Fitch Takes Rating Actions on Large Regional Banks Following Peer Review

NEW YORK--()--Link to Fitch Ratings' Report: Large Regional Bank Periodic Review (In Wait and See Mode for Rates to Move)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=777148

Following its large regional bank peer review, Fitch Ratings has upgraded the ratings for Regions Financial Corporation (RF) to 'BBB' from 'BBB-'. The Rating Outlook is Stable. In addition, Fitch's peer review includes affirmations of the Long-Term Issuer Default Ratings (IDRs) for the following 14 large regional banks:

--BB&T Corporation (BBT);

--Capital One Financial Corporation (COF);

--Comerica Incorporated (CMA);

--Fifth Third Bancorp (FITB);

--Huntington Bancshares Inc. (HBAN);

--Keycorp (KEY);

--M&T Bank Corporation (MTB);

--MUFG Americas Holding Corporation (MUFG);

--PNC Financial Services Group (PNC);

--SunTrust Banks Inc. (STI);

--US Bancorp (USB);

--Wells Fargo & Company (WFC);

--Zions Bancorporation (ZION).

Fitch upgraded RF's IDR to 'BBB' from 'BBB-' reflecting continued asset quality improvement, a strong capital profile, and a generally recovering overall risk profile. The upgrade and Stable Rating Outlook incorporate expectations of an improving earnings profile over time.

The Rating Outlook remains Positive for STI and MTB, while the Outlook for ZION was revised to Stable from Positive. Fitch revised ZION's Outlook to Stable from Positive due to continued underperformance relative to peer banks.

MTB's Outlook remains Positive. Fitch expects to resolve the Outlook following the removal of the BSA/AML-related MOU or final approval to acquire Hudson City, which would indicate sufficient improvement in its BSA/AML risk management program.

If the regulatory order or the acquisition is still not completed within the next 12 months, Fitch may consider revising the Outlook to Stable.

STI's Outlook also remains Positive reflecting the company's balanced and diverse business mix, improving asset quality, and good capital profile.

Fitch has published Rating Action Commentaries for each of the large regional banks, which are available on www.fitchratings.com. These include each issuer's key rating drivers and rating sensitivities and lists of all rating actions taken.

For further discussion of the large regional bank sector in general, refer to the special report titled 'Large Regional Bank Periodic Review: In Wait and See Mode for Rates to Move,' to be published shortly.

Additional information is available on www.fitchratings.com.

Applicable Criteria and Related Research:

--'Global Financial Institutions Rating Criteria (Jan. 31, 2014');

--'Rating FI Subsidiaries and Holding Companies (Aug. 10, 2012');

--'Assessing and Rating Bank Subordinated and Hybrid Securities Criteria (Jan. 31, 2014');

--'U.S. Bank HoldCos & OpCos: Evolving Risk Profiles (March 27, 2014');

--'U.S. Banking Quarterly Comment: 2Q14 (July 23, 2014');

--'Index Trend Analysis - 2Q14 (Fitch Fundamentals Index Falls to Neutral) (July 15, 2014');

--'Risk Radar Global 3Q14 (September 15, 2014').

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Contacts

Fitch Ratings
Julie Solar, +1 312-368-5472
Senior Director
Fitch Ratings, Inc.
70 West Madison Street
Chicago, IL 60602
or
Christopher Wolfe, +1 212-908-0771
Managing Director
or
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
Julie Solar, +1 312-368-5472
Senior Director
Fitch Ratings, Inc.
70 West Madison Street
Chicago, IL 60602
or
Christopher Wolfe, +1 212-908-0771
Managing Director
or
Joo-Yung Lee, +1 212-908-0560
Managing Director
or
Media Relations:
Brian Bertsch, +1 212-908-0549
brian.bertsch@fitchratings.com