Fitch Affs Bank One's Rtgs; Purchase Of Credit Card Portfolio.Business Editors
NEW YORK--(BUSINESS WIRE)--April 9, 2001
Fitch fitch: see polecat. affirms the ratings of Bank One Corporation (ONE) and its operating units operating unit
A type of operating company that engages in transactions with outsiders and that is owned by another business. For example, in 1995 the stockholders of Capital Cities/ABC approved a $19 billion merger with the Walt Disney Company, whereupon , following the announcement that ONE has agreed to purchase Wachovia For Moravian settlements in North Carolina, see .
Wachovia Corporation (NYSE: WB), based in Charlotte, North Carolina, is the third largest banking chain in the United States based on total deposits. Corporation's (Wachovia) credit card portfolio. The Outlook remains Stable. Ratings of Wachovia and its subsidiaries are also affirmed af·firm
v. af·firmed, af·firm·ing, af·firms
1. To declare positively or firmly; maintain to be true.
2. To support or uphold the validity of; confirm.
v.intr. with a Stable Outlook.
A complete list of ratings of ONE, Wachovia and their subsidiaries is provided at the end of this release.
Fitch believes the transaction has significant strategic value for ONE. The North American North American
named after North America.
North American blastomycosis
see North American blastomycosis.
North American cattle tick
see boophilusannulatus. credit card industry is consolidating rapidly, and ONE is well positioned to be one of a handful of surviving participants. Through its subsidiary First USA Bank, N.A. (First USA), ONE is the third-largest credit card issuer in the nation. This purchase of this high quality portfolio allows First USA to expand its account base by approximately ap·prox·i·mate
1. Almost exact or correct: the approximate time of the accident.
ONE will offer Wachovia customers additional card products and choices. The transaction is expected to be immediately accretive to earnings. While tangible Possessing a physical form that can be touched or felt.
Tangible refers to that which can be seen, weighed, measured, or apprehended by the senses. A tangible object is something that is real and substantial. An automobile is an example of tangible Personal Property. capital will decline after 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, Fitch believes the bank's earnings power should restore capital within a reasonable period.
Fitch notes that First USA experienced significant operational difficulties and customer service problems during 1999. Since then, there have been significant management changes, both at ONE and in First USA. New management has addressed the practices that caused the problems, and has achieved increased customer satisfaction and retention. Fitch believes that First USA has regained the managerial capacity to execute To run a program, which causes the computer to carry out its instructions. See executable code, instruction and EXE file.
execute - execution a major acquisition.
Fitch expects that the transaction will add to ONE's franchise strength and earnings power without significantly straining its financial flexibility. Fitch also expects that the conversion of acquired accounts to First USA's platform should proceed smoothly. Nonetheless, Fitch will monitor changes to ONE's financial profile and the integration of the acquired portfolio as part of Fitch's ongoing surveillance.
Ratings affirmed: Bank One Corporation -- Individual rating 'B'; -- Senior short-term 'F1'; -- Senior long-term 'A+'; -- Subordinated long-term 'A'; -- Support '5'. First USA Bank N.A. -- Individual rating 'B/C'; -- Senior short-term 'F1+'; -- Senior long-term 'A+'; -- Subordinated long-term 'A'; -- Uninsured deposits long-term 'AA-'; -- Uninsured deposits short-term 'F1+'; -- Support '4'. American National Bank Bank One Michigan Bank One Arizona, N.A. Bank One Colorado, N.A. Bank One, N.A (Chicago) Bank One N.A. (Indianapolis) Bank One Kentucky, N.A Bank One Louisiana, N.A. Bank One, N.A (Columbus OH) Bank One Oklahoma Bank One Texas, N.A Bank One, Utah, N.A. Bank One West Virginia Bank One Wisconsin -- Individual rating 'B'; -- Senior short-term 'F1+'; -- Senior long-term 'A+'; -- Subordinated long-term 'A'; -- Uninsured deposits long-term 'AA-'; -- Uninsured deposits short-term 'F1+'; -- Support '4'. First Chicago NBD Capital I -- Trust preferred 'A'. Wachovia Corporation -- Individual rating 'A/B'; -- Senior short-term 'F1+'; -- Senior long-term 'AA-'; -- Subordinated long-term 'A+'; -- Support '5'. Wachovia Bank N.A. -- Individual rating 'A/B'; -- Senior short-term 'F1+'; -- Senior long-term 'AA-'; -- Uninsured deposits long-term 'AA'; -- Uninsured deposits short-term 'F1+'; -- Support '4'. Wachovia Capital Trust I Wachovia Capital Trust II Wachovia Capital Trust V Central Fidelity Capital Trust I -- Trust Preferred 'A+'.