Fitch Ratings affirmed five large U.S. regional banks.
Capital One Financial Corp.'s long-term and short-term issuer default ratings were affirmed at A-/F1. The outlook on the ratings remains stable. The ratings remain supported by Capital One's banking franchise, good funding position and good capital levels relative to rating levels. The affirmation is also supported by core earnings performance in-line with Capital One's current rating level.
The rating agency also affirmed Truist Financial Corp. and primary operating subsidiary Truist Bank's long-term issuer default rating and viability ratings at A+ and "a+," respectively. Fitch affirmed the entities' F1 short-term issuer default ratings. The outlook on the ratings remains stable.
Fitch said Truist Financial's rating strength will be driven by management's ability to successfully execute on integrating systems as well as integrating culture after the merger of equals between BB&T Corp. and SunTrust Banks Inc. The affirmation also reflects Fitch's expectation that the combined entity's franchise and overall company profile will bring out the complementary nature of the merger of equals as highlighted by management at the deal's announcement. Fitch also expects the combined entity to remain a strong core earnings performer amongst peers driven by sound credit risk management.
Wells Fargo & Co.'s long-term issuer default rating was affirmed at A+. The ratings outlook is stable. The affirmation reflects the company's solid capital and liquidity profiles. Fitch added that relative to Wells Fargo's large regional bank peers, the bank is subject to both higher capital and liquidity requirements that provide an added layer of creditor protection and lend support to the company's current ratings.
U.S. Bancorp's long-term and short-term issuer default ratings were affirmed at AA-/F1+. The ratings outlook remains stable. U.S. Bancorp's ratings continue to reflect its strong risk-adjusted earnings performance driven by its superior, balanced business model, according to the rating agency. The ratings also reflect Fitch's positive view of management's consistent and well-communicated strategy on which it has executed on over the years.
PNC Financial Services Group Inc.'s long-term and short-term issuer default ratings were also affirmed at A+/F1. The ratings outlook is stable. The affirmation reflects the company's strong earnings profile, stable and diverse business model, consistent performance through time and solid liquidity profile. Fitch also views the company's company profile as strong, supported by its solid deposit market shares, and a diverse business model, with particular strengths in commercial and corporate banking, treasury management, middle-market M&A advisory and wealth management.