Correct: Fitch Places Washington Mutual Finance Corp on Rating Watch Positive Following Acquisition by Citigroup.Business Editors CHICAGO--(BUSINESS WIRE)--Nov. 25, 2003 (Changes to third paragraph) Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. has placed the short and long-term ratings of Washington Mutual “WaMu” redirects here. For the Washington, DC radio station, see WAMU. Washington Mutual (or WaMu; NYSE: WM) is the United States' largest savings and loan association. Finance Corp on Rating Watch Positive following the announced acquisition by Citigroup Inc. The entity is expected to be combined with the CitiFinancial branch network expanding Citifinancial assets by $4 billion. At September 30, 2003, Washington Mutual Finance Corp had short-term debt Short-term debt Debt obligations, recorded as current liabilities, requiring payment within the year. in the form of commercial paper of $1 billion and senior unsecured debt Unsecured debt Debt that does not identify specific assets that the debtholder is entitled to in case of default. of approximately $2.3 billion. This debt will be guaranteed by Citicorp Holdings Inc. and thus debt ratings will be equalized with Citicorp and Citigroup ratings upon consummation CONSUMMATION. The completion of a thing; as the consummation of marriage; (q.v.) the consummation of a contract, and the like. 2. A contract is said to be consummated, when everything to be done in relation to it, has been accomplished. of the transaction. The corporate entity ratings will then be withdrawn. Ratings are listed at the conclusion of this press release. The acquisition is consistent with Citigroup's strategy of expanding its consumer franchise within the US and is expected to be immediately accretive to earnings upon closure in the first quarter of 2004. Ratings for Citigroup Inc. and Citicorp Holdings Inc. are affirmed given 1) geographic and business line diversity, 2) disciplined risk management 3) a commitment to maintaining capital at targeted levels and 4) its strong financial performance. Integration risk is low given the expertise previously demonstrated by Citigroup. Both credit quality and consolidated capital ratios are expected to remain within current ranges. Ratings Placed on Positive Watch Washington Mutual Finance Corp. Corporate Entity -- Long-Term 'A'; -- Short-Term 'F1'; -- Senior Unsecured Debt 'A'; -- Subordinated Debt Subordinated Debt A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan". Shelf 'A-'; -- Commercial Paper 'F1'. Ratings Affirmed Citigroup Inc. -- Senior debt/long-term issuer 'AA+'; -- Subordinated debt 'AA'; -- Preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. 'AA'; -- Short-term debt/short-term issuer 'F1+'; -- Individual 'A'; -- Support '5'. Citicorp -- Senior debt/long-term issuer 'AA+'; -- Subordinated debt 'AA'; -- Short-term debt/short-term issuer 'F1+'; -- Individual 'A'; -- Support '5'. |
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