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Fitch Announces Ratings For The `New' Wachovia Corporation.



Business Editors

NEW YORK--(BUSINESS WIRE)--Sept. 4, 2001

Fitch fitch: see polecat.  has assigned as·sign  
tr.v. as·signed, as·sign·ing, as·signs
1. To set apart for a particular purpose; designate: assigned a day for the inspection.

2.
 ratings to the new Wachovia Corporation and adjusted ratings for existing obligations of its two predecessor companies, following the Sept. 1, 2001 completion of the merger between First Union Corporation and Wachovia Corporation.

The merger was accomplished through an exchange of 2 shares of the new Wachovia Corporation (formerly First Union Corporation) plus shareholders are entitled en·ti·tle  
tr.v. en·ti·tled, en·ti·tling, en·ti·tles
1. To give a name or title to.

2. To furnish with a right or claim to something:
 to receive either $0.48 or two dividend equalization In communications, techniques used to reduce distortion and compensate for signal loss (attenuation) over long distances.  preferred shares Preferred shares

Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock.
, for each common share of the old Wachovia Corporation. The surviving corporate entity is First Union Corporation, which has changed its name to Wachovia Corporation. The individual bank subsidiaries will remain separate entities with their existing names until they are combined sometime next year.

The new Wachovia is now the fourth largest U.S. banking company with assets of approximately $322 billion and capital ratios that should rank the firm solidly among its large bank peers. Despite the well-publicized struggle to win Wachovia shareholders' approval during the past several months, management of both First Union and Wachovia has remained focused on planning for the merger and a smooth integration.

In addition, both companies posted solid second quarter 2001 results. Fitch believes that the combined organization will benefit from the complementary nature of the two franchises which should ultimately improve the new Wachovia's scale in key businesses and enhance cross-sell opportunities to improve revenue generation.

The following ratings for the new Wachovia Corporation, formerly First Union Corporation, and related entities have been changed:

Wachovia Corporation (formerly First Union Corporation)
-- Long-term issuer rating upgraded to 'A+' from 'A';

-- Senior debt upgraded to 'A+' from 'A';

-- Subordinated debt upgraded to 'A' from 'A-';

-- Short-term issuer rating affirmed at 'F1';

-- Short-term debt affirmed at 'F1';

-- Individual rating affirmed at 'B'.


First Union National Bank

-- Long-term Long-term

Three or more years. In the context of accounting, more than 1 year.


long-term

1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term.
 deposits upgraded to 'AA-' from 'A+';

-- Senior debt upgraded to 'A+' from 'A';

-- Subordinated debt Subordinated Debt

A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan".
 upgraded to 'A' from 'A-';

-- Short-term Short-term

Any investments with a maturity of one year or less.


short-term

1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time.
 deposits upgraded to 'F1+' from 'F1';

-- Short-term debt Short-term debt

Debt obligations, recorded as current liabilities, requiring payment within the year.
 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.
 at 'F1';

-- Individual rating affirmed at 'B'.

First Union Bank of Delaware Delaware, state, United States
Delaware (dĕl`əwâr, –wər), one of the Middle Atlantic states of the United States, the country's second smallest state (after Rhode Island).


-- Long-term deposits upgraded to 'AA-' from 'A+';

-- Senior debt upgraded to 'A+' from 'A';

-- Short-term deposits upgraded to 'F1+' from 'F1';

-- Individual rating affirmed at 'B'.

First Union Capital I

-- Preferred upgraded to 'A' from 'A-'.

First Union Institutional Capital I-II

-- Preferred upgraded to 'A' from 'A-'.

Corestates Capital I-III

-- Preferred upgraded to 'A' from 'A-'.

Corestates Capital Corp.

-- Senior debt upgraded to 'A+' from 'A';

-- Subordinated debt upgraded to 'A' from 'A-';

Meridian Meridian (mərĭd`ēən), city (1990 pop. 41,036), seat of Lauderdale co., E Miss., near the Ala. line; settled 1831, inc. 1860.  Bancorp Inc.

-- Subordinated debt upgraded to 'A' from 'A-'.

First Fidelity Bancorporation

-- Subordinated Debt upgraded to 'A' from 'A-'

The Money Store

-- Senior debt upgraded to 'A+' from 'A';

-- Subordinated debt upgraded to 'A' from 'A-'.

The following ratings for Wachovia Corporation and related entities have been adjusted:

Wachovia Corporation

-- Long-term issuer rating changed to 'Not Rated' from 'AA-';

-- Senior debt lowered to 'A+' from `AA-';

-- Subordinated debt lowered to 'A' from `A+'

-- Short-term issuer rating changed to 'Not Rated' from 'F1+';

-- Short-term debt lowered to 'F1' from `F1+';

-- Individual Rating changed to 'Not Rated' from 'A/B';

Wachovia Bank N.A.

-- Long-term deposits lowered to 'AA-' from `AA';

-- Senior debt lowered to 'A+' from `AA-';

-- Short-term deposits affirmed at `F1+';

-- Short-term debt lowered to 'F1' from `F1+';

-- Individual rating changed to 'B' from 'A/B'.

Wachovia Capital Trust I

-- Trust preferred lowered to 'A' from `A+'.

Wachovia Capital Trust II

-- Trust preferred lowered to 'A' from `A+'.

Wachovia Capital Trust V

-- Trust preferred lowered to 'A' from `A+'.

Central Fidelity Capital Trust I

-- Trust preferred 'lowered to 'A' from `A+'.
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No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2001, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Date:Sep 4, 2001
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