DBRS on Oct. 11 upgraded KeyCorp's long-term issuer rating to A (low) from BBB (high), in light of "sustained progress" in improving profitability and the likelihood it will recognize more cost savings than anticipated from the First Niagara Financial Group Inc. integration.
The rating agency also upgraded the company's long-term senior debt rating to A (low), its short-term issuer rating and short-term instruments to R-1 (low), its subordinated debt to BBB (high) and its preferred stock to BBB (low).
Subsidiary KeyBank NA's long-term issuer rating, long-term senior debt and long-term deposits were upgraded to A, and its subordinated debt was upgraded to A (low). The bank's short-term issuer rating and short-term instruments were confirmed at R-1 (low).
The trend on all ratings is now stable.