Fitch Affirms Webster Financial Corp. Ratings; Revises Outlook to Positive.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 the 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. ) and short term rating for Webster Financial Corporation (WBS WBS - Work Breakdown Structure ) and Webster Bank, NA at 'BBB' and 'F2', respectively. At the same time, Fitch has revised the Rating Outlook to Positive from Stable. A complete list of ratings follows this release. Additionally, ratings at Webster Capital Trust I - II, and Webster Preferred Capital Corp. have been upgraded due to sound liquidity at the holding company and improved capital levels. The revision in Rating Outlook reflects WBS' improved tangible capital, sound asset quality and enhanced financial flexibility. Fitch believes WBS has overcome the growing pains grow·ing pains pl.n. Pains in the limbs and joints of children or adolescents, frequently occurring at night and often attributed to rapid growth but arising from various unrelated causes. it experienced in transitioning from its thrift roots to a more commercial banking focused institution. The company is better positioned with the recent balance sheet restructuring. Constraining the ratings is the company's below par earnings generation, elevated operating efficiency, and growing yet somewhat limited regional geographic franchise. Contributions to retained earnings Retained Earnings The percentage of net earnings not paid out in dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders equity on the balance sheet. and balance sheet shrinkage helped bolster WBS' tangible equity ratio to 6.46% at Dec. 31, 2006 from the low 4.71% experienced during the FirstFed acquisition in 2004. Fitch believes that management is more committed to maintaining capital at higher levels than it has been historically. A positive resolution of the Rating Outlook will be decided based on the company's ability to boost earnings performance while maintaining favorable asset quality and capital levels. Fitch has affirmed the following ratings and revised the Rating Outlook to Positive: Webster Financial Corporation: --Issuer Default Rating 'BBB'; --Short-term 'F2'; --Long-term 'BBB'; --Individual 'B/C'; --Support '5'. Webster Bank, NA: --Issuer Default Rating 'BBB'; --Short-term 'F2'; --Short-term deposit 'F2'; --Subordinated debt 'BBB-'; --Long-term deposit 'BBB+'; --Individual 'B/C'; --Support '5'. Fitch has upgraded the following ratings: Webster Capital Trust I - II --Preferred stock 'BBB-'. Webster Preferred Capital Corp --Preferred stock 'BBB-'. 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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