Crestar Financial on S&PWatch; SunTrust Banks Rtgs Afmd.NEW YORK--(BUSINESS WIRE)--Standard & Poor's CreditWire 7/20/98-- Standard & Poor's today placed its ratings on Crestar Financial Corp. on CreditWatch with positive implications (see list below). At the same time, Standard & Poor's affirmed af·firm v. af·firmed, af·firm·ing, af·firms v.tr. 1. To declare positively or firmly; maintain to be true. 2. To support or uphold the validity of; confirm. v.intr. its ratings on SunTrust Banks SunTrust Banks, Inc. (NYSE: STI) is an American bank holding company. The largest subsidiary is SunTrust Bank. It had $182.2 billion in assets as of December 31, 2006. Inc. SunTrust's ratings are not on CreditWatch. The outlook on SunTrust remains stable. The CreditWatch placement follows the announcement that Crestar Financial has agreed to be acquired by the higher rated SunTrust Banks. Upon completion of the acquisition, the ratings on Crestar will be equalized with those on SunTrust. The merger will result in a banking institution with total assets of just under $80 billion, deposits of $45 billion, and equity of $7.8 billion. The transaction will be accounted for as a pooling of interests Pooling of Interests An accounting method, used in mergers and acquisitions, where the balance sheet items of the two companies are simply added together. Notes: The opposite of pooling of interests is the purchase acquisition method. . The merger combines two strong franchises, each of which have produced strong financial results over the past several periods while maintaining solid market position in their respective markets. Crestar, acquisitive in nature with a solid deposit franchise funding a balanced loan portfolio, provides SunTrust with a financially strong partner. However, while each party in the merger has relatively strong financial profiles, risks do exist. SunTrust has elected e·lect v. e·lect·ed, e·lect·ing, e·lects v.tr. 1. To select by vote for an office or for membership. 2. To pick out; select: elect an art course. to exercise restraint RESTRAINT. Something which prevents us from doing what we would desire to do. 2. Restraint is lawful and unlawful. It is lawful when its object is to prevent the violation of the law, or the rights of others. regarding participation in the merger frenzy Frenzy Beatlemania term referring to the Beatles’ (rock musicians) immense popularity; manifested by screaming fans in the 1960s. [Pop. Culture: Miller, 172–181] Big Bull Market of the large southeastern south·east n. 1. Abbr. SE The direction or point on the mariner's compass halfway between due south and due east, or 135° east of due north. 2. An area or region lying in the southeast. 3. banks. As such, with a limited track record with large acquisitions, integration risks exist. Additionally, while Crestar is a solid banking institution, its markets are not contiguous Adjacent or touching. Contrast with fragmentation. See contiguous file. to SunTrust's, therefore some synergistic synergistic /syn·er·gis·tic/ (sin?er-jis´tik) 1. acting together. 2. enhancing the effect of another force or agent. syn·er·gis·tic adj. 1. benefits associated with contiguous markets may be absent. OUTLOOK (SUNTRUST BANKS): STABLE While the transaction introduces some integration risk and possibly possesses limited synergistic advantages, SunTrust remains a well performing, well diversified diversified (di·verˑ·s institution. ---CreditWire -0-
RATINGS PLACED ON CREDITWATCH WITH POSITIVE IMPLICATIONS
Rating
Crestar Financial Corp.
Counterparty credit rating A-
Senior debt (Rule 415 shelf registration)(1) A-
Subordinated debt BBB+
Preferred stock (Rule 415 shelf registration)(1) BBB
Crestar Bank
Counterparty credit rating A/A-1
Certificates of deposit A/A-1
Crestar Capital Trust I
Preferred stock BBB
OUTSTANDING RATINGS AFFIRMED SunTrust Banks Inc.
Counterparty credit rating A+/A-1
Senior debt A+
Subordinated debt A
Commercial paper A-1
SunTrust Bank, Atlanta
SunTrust Bank, Augusta
SunTrust Bank, Central Florida N.A., Orlando
SunTrust Bank, Chattanooga N.A.
SunTrust Bank, East Central Florida
SunTrust Bank, East Tennessee N.A.
SunTrust Bank, Gulf Coast
SunTrust Bank, Miami N.A.
SunTrust Bank, Mid-Florida N.A.
SunTrust Bank, Middle Georgia N.A.
SunTrust Bank, Nashville N.A.
SunTrust Bank, Nature Coast
SunTrust Bank, North Florida N.A.
SunTrust Bank, North Central Florida
SunTrust Bank, Northeast Georgia N.A.
SunTrust Bank, Savannah N.A.
SunTrust Bank, South Florida N.A., Ft Lauderdale
SunTrust Bank, South Georgia N.A.
SunTrust Bank, Southeast Georgia N.A.
SunTrust Bank, Southwest Florida
SunTrust Bank, Tallahassee N.A.. SunTrust Bank,
Tampa Bay
SunTrust Bank, West Florida SunTrust Bank,
West Georgia N.A.
Counterparty credit rating AA-/A-1+
Bank loan rating AA-/A-1+
Subordinated debt A+
SunTrust Bank, Atlanta
SunTrust Bank, Central Florida N.A., Orlando SunTrust
Bank, Miami N.A.
SunTrust Bank, Nashville N.A.
Certificates of deposit AA-/A-1+
SunTrust Capital I
SunTrust Capital II
SunTrust Capital III
Preferred stock A-
(1) Preliminary rating
CONTACT: Charles D. Rauch, 212/208-1535
John K. Bartko, 212/208-8338
For more information on criteria or subscriptions:
http://www.ratings.standardpoor.com
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