DBRS on May 23 upgraded Cincinnati-based Fifth Third Bancorp's long-term issuer rating to A from A (low) and long-term senior debt rating to A.
The rating agency also upgraded Fifth Third Bancorp's subordinated debt rating to A (low) and preferred stock rating to BBB. It confirmed the company's short-term issuer rating and short-term instruments rating at R-1 (low).
Subsidiary Fifth Third Bank's long-term issuer rating, long-term senior debt rating and long-term deposits rating were upgraded to A (high) by the rating agency. DBRS also upgraded Fifth Third Bank's short-term issuer rating and short-term instruments rating to R-1 (middle). It upgraded Fifth Third Bank's subordinated debt rating to A.
The trend for all ratings is stable.
DBRS views Fifth Third Bancorp's acquisition of MB Financial Inc. as "strategically compelling as it improves Fifth Third Bancorp's franchise by adding scale and expertise in the highly competitive, but attractive Chicago market."
Also on May 23, Moody's placed the ratings of MB Financial under review for upgrade, from stable, following the company's planned purchase by Fifth Third Bancorp.
The review for upgrade of MB Financial's ratings, according to the rating agency, "is prompted by MB Financial's prospective alignment with Fifth Third's established regional banking franchise and strong credit profile, and by consideration of implicit support from Fifth Third to MB Financial."
