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Fitch affirms ratings for large US regional banks

Following apeer review of the U.S.' large regional banks, Fitch Ratings on Oct. 4 affirmedthe long-term issuer default ratings of these institutions, among other rating actions.

The actionscover ratings and outlooks for BB&TCorp., Citizens FinancialGroup Inc., Comerica Inc.,Capital One Financial Corp.,Fifth Third Bancorp, , , M&T Bank Corp., MUFGAmericas Holdings Corp., PNCFinancial Services Group Inc., RegionsFinancial Corp., SunTrustBanks Inc., U.S. Bancorp,Wells Fargo & Co.,and Zions Bancorp.

The rating agencyalso noted that it revised the outlooks for several banks — to negative from stablefor Fifth Third to reflect that its financial profile and earnings no longer differfrom lower-rated peers; to negative from stable for Wells Fargo to reflect the potentialreputational damage associated with its account opening scandal and regulatory woes;to positive from stable for Regions and Zions due to the improvement in the former'scredit profile and the latter's sustained execution of strategic initiatives.


For BB&T,the rating agency affirmed the company's long-term issuer default rating at A+ witha stable outlook, F1 short-term issuer default rating, "a+" viabilityrating, A+ senior debt rating, A subordinated debt rating, F1 short-term debt rating,BBB- preferred stock rating, 5 support rating, and NF support floor rating.

For unit , Fitchaffirmed the bank's long-term issuer default rating at A+ with a stable outlook,short-term issuer default rating at F1, "a+" viability rating, seniordebt rating at A+, subordinated debt rating at A, short-term debt rating at F1,long-term deposits rating at AA-, short-term deposit rating at F1+, support ratingat 5, and support floor rating at NF.

Fitch notedthat the company has consistent performance, a conservative risk appetite and soundrisk management practices.


For CitizensFinancial, the rating agency affirmed the company's long-term issuer default ratingat BBB+ with a stable outlook, short-term issuer default rating at F2, "bbb+"viability rating, subordinated debt rating at BBB, preferred stock rating at BB-,senior debt rating at BBB+, support rating at 5, and support floor rating at NF.

For unit , Fitch affirmedthe bank's long-term issuer default rating at BBB+ with a stable outlook, short-termissuer default rating at F2, "bbb+" viability rating, support rating at5, long-term deposits rating at A-, senior unsecured rating at BBB+, short-termdeposits rating at F2, and support floor rating at NF.

For unit , Fitchaffirmed the bank's long-term issuer default rating at BBB+ with a stable outlook,short-term issuer default rating at F2, "bbb+" viability rating, supportrating at 5, long-term deposits rating at A-, short-term deposits rating at F2,and support floor rating at NF.

Fitch notedthat the company has a solid capital profile, significant loan growth in certainloan categories, and a clearly articulated and well-defined strategy, in additionto its being back on track to meet its expense initiative plan.


For Comerica,the rating agency affirmed the company's long-term issuer default rating at A, witha negative outlook; senior shelf rating at A, senior debt rating at A, subordinateddebt at A-, "a" viability rating, short-term issuer default rating atF1, short-term debt rating at F1, support rating at 5, and NF support floor rating.

For unit , Fitch affirmed thebank's long-term issuer default rating at A with a negative outlook, subordinateddebt rating at A-, senior debt rating at A, long-term deposits rating at A+, "a"viability rating, short-term issuer default rating at F1, short-term deposits ratingat F1, support rating at 5, and support floor rating at NF.

Fitch pointedout that the company has a solid franchise and conservative underwriting standards,better-than-peer asset quality performance, and a solid funding profile. However,the rating agency also expects that the company's financial performance will beexposed to greater pressure compared to large regional peers due to the continuedlow interest rate environment and relatively large exposure to energy lending.


For CapitalOne Financial, the rating agency affirmed the company's long-term issuer defaultrating at A- with a stable outlook, short-term issuer default rating at F1, "a-"viability rating, senior unsecured debt rating at A-, senior shelf rating at A-,subordinated debt rating at BBB+, preferred stock rating at BB, support rating at5, and support floor rating at NF.

For unit , affirmedwere the bank's long-term issuer default rating at A- with a stable outlook, short-termissuer default rating at F1, "a-" viability rating, senior unsecured debtrating at A-, subordinated debt rating at BBB+, short-term debt rating at F1, long-termdeposits at A, short-term deposit rating at F1, support rating at 5, support floorrating at NF.

For , affirmed were thebank's long-term issuer default rating at A- with a stable outlook, short-term issuerdefault rating at F1, "a-" viability rating, senior unsecured debt ratingat A-, subordinated debt rating at BBB+, short-term debt at F1, long-term depositsat A, short-term deposit at F1, support at 5, support floor rating at NF.

Fitch notedthat the company has displayed good earnings performance and a strong efficiencyratio relative to peers, and has moved away from a business model almost entirelyreliant on wholesale borrowings and securitizations to one being more fully relianton deposit funding via a mix of organic deposit growth and acquisitions.


For Fifth ThirdBancorp, the rating agency affirmed the company's long-term issuer default ratingat A with the outlook revised to negative, "a" viability rating, preferredstock rating at BB+, senior debt rating at A, subordinated debt at A-, short-termissuer default rating at F1, short-term debt rating at F1, support rating at 5,and support floor rating at NF.

For unit , affirmed were itslong-term issuer default rating at A with the outlook revised to negative, "a"viability rating, senior debt rating at A, subordinated debt rating at A-, long-termdeposits rating at A+, short-term issuer default rating at F1, short-term depositsrating at F1, support rating at 5, and support floor rating at NF.

Fitch notedthat Fifth Third has taken steps to improve its risk profile and has a solid corefunding base, with the rating agency also taking a positive view of the company'sstrategic priorities such as growing fee revenue and streamlining processes to cutback on costs.


For HuntingtonBancshares, the rating agency affirmed the company's long-term issuer default ratingat A- with a stable outlook, short-term issuer default rating at F1, "a-"viability rating, senior unsecured rating at A-, subordinated debt rating at BBB+,preferred stock rating at BB, support rating at 5, and support floor rating at NF.

For unit , affirmedwere its long-term deposits rating at A, long-term issuer default rating at A- witha stable outlook, "a-" viability rating, senior unsecured rating at A-,subordinated debt rating at BBB+, short-term issuer default rating at F1, short-termdeposits rating at F1, support rating at 5, and support floor rating at NF.

Fitch believesthat the company has a solid financial profile, which include a good earnings trajectoryand improved funding profile. In addition, the rating agency noted that the companyhas stable asset quality performance, good loan growth, and stable credit performance.


For KeyCorp,the rating agency affirmed the company's long-term issuer default rating at A- witha negative outlook, short-term issuer default rating at F1, "a-" viabilityrating, senior debt rating at A-, subordinated debt rating at BBB+, preferred stockrating at BB, short-term debt rating at F1, support rating at 5, and support floorrating at NF.

For subsidiaryKeyBank NA, affirmed werethe bank's long-term issuer default rating at A-, with a negative outlook, short-termissuer default rating at F1, "a-" viability rating, long-term depositsrating at A, senior debt rating at A-, subordinated debt rating at BBB+, short-termdeposits rating at F1, support rating at 5, and support floor rating at NF.

According toFitch, the company's strong capital position, solid asset quality performance, diversifiedrevenue mix, and reduced risk profile are factors that support its issuer defaultratings.


For M&TBank Corp., the rating agency affirmed the company's long-term issuer default ratingat A with a stable outlook, "a" viability rating, and preferred stockrating at BB+.

For ,affirmed were its long-term issuer default rating at A with a stable outlook, "a"viability rating, senior unsecured debt rating at A, subordinated debt rating atA-, and long-term deposits rating at A+.

For , affirmed wereits long-term issuer default rating at A with a stable outlook, "a" viabilityrating, and long-term deposits rating at A+.

Fitch notedthat the company's capital position is improving, while also having a strong franchiseand strong earnings, experienced management team, and good revenue diversification.In addition, the rating agency views its BSA/AML written agreement as neutral toits long-term issuer default rating.


For MUFG Americas,the rating agency affirmed the company's long-term issuer default rating at A witha stable outlook, short-term issuer default rating at F1, "a" viabilityrating, senior debt rating at A, and support rating at 1.

For unit , affirmed wereits long-term issuer default rating at A with a stable outlook, short-term issuerdefault rating at F1, "a" viability rating, senior debt rating at A, short-termdebt rating at F1, long-term deposits rating at A+, short-term deposit rating atF1, and support rating at 1.

The rating agencynoted that the company has a strong capital profile due to its retained earningsgrowth, past capital contributions from its parent company, the absence of any dividendpayments to its parent company, and solid asset quality metrics.


For PNC Financial,the rating agency affirmed its long-term issuer default rating at A+ with a stableoutlook, short-term issuer default rating at F1, "a+" viability rating,support rating at 5, support floor rating at NF, senior unsecured rating at A+,short-term debt rating at F1, subordinated rating at A and preferred stock at BBB-.

For unit , affirmed were its long-termissuer default rating at A+ with a stable outlook, long-term deposits rating atAA-, "a+" viability rating, subordinated rating at A, senior unsecuredrating at A+, short-term issuer default rating at F1, short-term deposits at F1+,short-term debt rating at F1, support rating at 5, and support floor at NF.


For RegionsFinancial, the rating agency affirmed the company's long-term issuer default ratingat BBB with the outlook revised to positive, short-term issuer default rating atF2, subordinated debt rating at BBB-, "bbb" viability rating, senior unsecuredrating at BBB, preferred stock rating at B+, support rating at 5, and support floorrating at NF.

For , affirmed were its long-termissuer default rating at BBB with the outlook revised to positive, long-term depositsrating at BBB+, short-term deposits rating at F2, short-term issuer default ratingat F2, senior debt rating at BBB, subordinated debt rating at BBB-, "bbb"viability rating, support rating at 5 and support floor rating at NF.

Fitch pointedout that Regions has good capital and liquidity profile, also noting that the companyhas higher energy-related exposure.


For SunTrustBanks, the rating agency affirmed the company's long-term issuer default ratingat A- with a stable outlook, short-term issuer default rating at F1, " a-"viability rating, preferred stock rating at BB, senior debt rating at A-, subordinateddebt rating at BBB+, short-term debt rating at F1, support rating at 5, and supportfloor rating at NF.

For subsidiarySunTrust Bank, affirmedwere its long-term issuer default rating at A- with a stable outlook, short-termissuer default rating at F1, "a-" viability rating, long-term depositsrating at A, market-linked securities rating at Aemr, senior notes rating at A-,short-term deposits rating at F1, subordinated debt rating at BBB+, short-term debtrating at F1, support rating at 5, and support floor at NF.

According toFitch, among the factors that support its ratings include the company's good assetquality, access to diversified sources of income, attractive retail franchise, improvedearnings, and stable liquidity profile.


For U.S. Bancorp,the rating agency affirmed the company's issuer default rating at AA with a stableoutlook, "aa" viability rating, senior debt rating at AA, subordinateddebt rating at AA-, preferred stock rating at BBB+, short-term issuer default ratingat F1+, short-term debt rating at F1+, support rating at 5', and support floor ratingat NF.

For unit , affirmed were its long-termissuer default rating at AA with a stable outlook, "aa" viability rating,long-term deposits rating at AA+, senior debt rating at AA, subordinated debt atAA-, short-term issuer default rating at F1+, short-term debt rating at F1+, short-termdeposit rating at F1+, support rating at 5, and support floor rating at NF.

Factors thatcontributed to U.S. Bancorp's ratings include its business model and low cost operatingmodel, along with sustained better earnings and better-than-peer credit performanceover multiple operating cycles, according to Fitch. The rating agency also notedthat the company continues to consistently perform better than peers in the FederalReserve's annual Comprehensive Capital Analysis and Review stress tests.


For Wells Fargo,the rating agency affirmed the company's long-term issuer default rating at AA-with a negative outlook, senior debt rating at AA-, subordinated debt rating atA+, preferred stock at BBB, short-term issuer default rating at F1+, commercialpaper rating at F1+, short-term debt rating at F1+, market-linked securities ratingat AA-EMR, "aa-" viability rating, support rating at 5, and support floorrating at NF.

For unit , affirmed wereits long-term issuer default rating at AA with a negative outlook, long-term depositsrating at AA+, senior debt rating at AA, subordinated debt rating at A+, short-termissuer default rating at F1+, short-term deposits rating at F1+, short-term debtrating at F1+, "aa-" viability rating, support rating at 5, and supportfloor rating at NF.

Affirmed forWells Fargo Bank Northwest NAwere its long-term issuer default rating at AA with a negative outlook, long-termdeposits rating at AA+, senior debt rating at AA, short-term issuer default ratingat F1+, short-term deposits rating at F1+, "aa-" viability rating, supportrating at 5, and support floor rating at NF.

While the companyhas a superior earnings profile, strong liquidity, and benign asset quality, Fitchnoted that some uncertainty exists concerning the impact of the potential reputationaldamage from recent regulatory actions and fines related to the illegal accountsopening scandal. In particular, Fitch said that it believes that Wells Fargo couldface earnings pressure as a result of the issue.


For Zions, therating agency affirmed the company's issuer default rating at BBB-, with a positiveoutlook, short-term issuer default rating at F3, "bbb-" viability rating,senior unsecured debt rating at BBB-, subordinated debt rating at BB+, short-termdebt rating at F3, preferred stock rating at B, support rating at 5, and supportfloor rating at NF.

For unit , affirmed were its long-termissuer default rating at BBB- with a positive outlook, short-term issuer defaultrating at F3, "bbb-" viability rating, long-term deposits rating at BBB,short-term deposit rating at F2, support rating at 5, and support floor rating atNF.

Fitch statedthat the company's strong liquidity and funding profile support its ratings, alongwith its sustained, solid franchise in the Western U.S. The rating agency also pointedout that the company's credit quality has experienced pressure due to energy exposure,but noted as well that Zions has managed to adequately control credit losses onthe whole.