NEW YORK--(BUSINESS WIRE)--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
Assessing and Rating Bank Subordinated and Hybrid Securities
U.S. Trust & Processing Banks - In Custody Banks We Trust