Correction - Fitch Rates Bank of America Corporation Preferred Stock 'AA-'.CHICAGO -- (This is an amendment to the release of May 23, 2008. The original version contained incorrect information about conversion of the coupon to a floating rate after the call date, and revises the information in the 2nd paragraph.) Fitch Ratings has assigned an 'AA-' rating to noncumulative perpetual preferred stock issued by Bank of America
Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world. Corporation (BAC BAC abbr. blood alcohol concentration ). This issue is on Rating Watch Negative. The issuance consists of $2.7 billion in depositary shares representing an interest in series H preferred stock issued by BAC. These securities offer a fixed coupon of 8.20% and are callable Callable Applies mainly to convertible securities. Redeemable by the issuer before the scheduled maturity under specific conditions and at a stated price, which usually begins at a premium to par and declines annually. beginning in May 2013. Proceeds will be used for general corporate purposes. These securities qualify for Tier 1 capital Tier 1 Capital A term used to describe the capital adequacy of a bank. Tier I capital is core capital, this includes equity capital and disclosed reserves. Notes: Equity capital includes instruments that can't be redeemed at the option of the holder. at the corporate level under regulatory guidelines. Fitch assigns 100% equity credit to this class of securities, due to the deeply subordinated status, the perpetual nature representing permanence of capital, and its noncumulative structure providing strong loss absorption capability. However, Fitch limits equity credit for hybrid securities such as these to 30% of a company's eligible capital base. BAC's hybrid securities exceeded this limit at March 31, 2008. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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