Fitch Affirms KeyCorp's IDR at 'A'; Outlook Stable.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- 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 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. the ratings of KeyCorp (KEY) and its rated subsidiaries including its long-term Issuer Default Rating (IDR IDR In currencies, this is the abbreviation for the Indonesian Rupiah. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. ) of 'A'. The Rating Outlook remains Stable. A complete list of ratings follows at the end of this release. KEY announced a sizeable second quarter 2008 (2Q08) after-tax charge of $1.1 billion to $1.2 billion for the AWG (American Wiring Gauge) A U.S. measurement standard of the diameter of non-ferrous wire, which includes copper and aluminum. In general, the thicker the wire, the greater the current-carrying capacity and the longer the distance it can span. leasing Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. and other leveraged lease transactions. While this is an accounting charge and does not impact cash, it does have an adverse impact on capital and earnings. Additionally, KEY has recently revised its guidance on NCOs for 2008 as it seeks to aggressively manage through its exposure in some troubled areas through loan sales. The company anticipates 2Q08 NCOs of approximately $500 million. To counteract these negative items, KEY has announced its intent to raise $1.5 billion of additional equity in the form of common equity and non-cumulative convertible perpetual 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. as well as reducing the dividend by 50% which will save approximately $250 million annually. In addition, to raising capital these actions will also improve holding company liquidity. Fitch's affirmation of all ratings and the maintenance of KEY's Stable Outlook reflect the company's current rating level as well as the appropriate responses to the announced charges. If the company is unable to raise capital or if asset quality worsens further a revision of the Rating Outlook could occur. Ratings Affirmed: KeyCorp --Long-term Issuer Default Rating (IDR) at 'A'; --Senior debt at 'A'; --Subordinated debt at 'A-'; --Short-term IDR at 'F1'; --Commercial paper at 'F1'; --Individual at 'B'; --Support at '5'; --Support floor at 'NF'; Rating Outlook Stable. KeyBank, NA --Long-term IDR at 'A'; --Senior debt at 'A'; --Subordinated debt at 'A-'; --Short-term IDR at 'F1'; --Individual at 'B'; --Long-term deposits at 'A+'; --Short-Term deposits at 'F1'; --Support at '4'; --Support floor at 'B'; Rating Outlook Stable. Key Treasury Management --Long-term IDR at 'A'; --Short-term issuer at 'F1'; Rating Outlook Stable. Key Corporate Capital Inc. --Long-term IDR at 'A'; --Short-term issuer at 'F1' Rating Outlook Stable. Key Bank of New York The Bank of New York, abbrieviated to BNY, was a global financial services company that existed until its merger with the Mellon Financial Corporation on July 2, 2007.[1] The bank now continues under the new name of The Bank of New York Mellon Corporation. , NA --Subordinated debt at 'A-'. KeyBank USA, NA --Long-term deposits at 'A+'. KeyCorp Capital I KeyCorp Capital II KeyCorp Capital III KeyCorp Capital VII KeyCorp Capital VIII KeyCorp Capital IX KeyCorp Capital X KeyCorp Institutional Capital A KeyCorp Institutional Capital B --Preferred stock at 'A-'. 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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