Fitch Raises Outlook, Ratings on Some Regional U.S. Banks
By Saabira Chaudhuri
Fitch Ratings has raised its outlook on M&T Bank Corp. (MTB) and SunTrust Banks Inc. (STI), part of a slew of actions the ratings firm took Tuesday on large regional banks.
Fitch said its outlook raise on M&T reflects "the consistency of the company's performance during a difficult operating environment," while its action on SunTrust reflects the company's solid liquidity profile, sound capital position, and improving asset quality.
Fitch said a meaningful upward rating momentum is unlikely for large regional banks as a group, as they already represent some of the highest-rated banks in Fitch's global rating universe.
But the ratings firm said that "a few institutions whose credit profiles have been demonstrating continued relative progress, such as M&T and SunTrust could see ratings improvement over the near-to-intermediate term."
Fitch raised Comerica Inc.'s (CMA) outlook to stable from negative, citing the company's "above-peer tangible capital base, improved fundamentals such as asset quality performance, and strong funding profile."
Separately, Fitch raised its rating on Fifth Third Bancorp (FITB) by one notch from A-minus to A, citing its strong earnings profile. "The company's earnings continue to trend above peer averages, and provide for good capital generation," said Fitch.
The ratings firm raised its rating on Huntington Bancshares Inc. (HBAN) by one notch from triple-B-plus to A-minus, citing its "good earnings profile, solid capital and liquidity position, and stable asset quality performance."
Write to Saabira Chaudhuri at email@example.com
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