Fitch IBCA Lowers BANK ONE CORP To `A+'.Business EditorsNEW YORK--(BUSINESS WIRE)--Jan. 11, 2000 Fitch fitch: see polecat. IBCA IBCA International Braille Chess Association IBCA Institute of Burial and Cremation Administration IBCA Integrated Business Communications Alliance IBCA International Barbeque Cookers Association IBCA Department of Interior Board of Contract Appeals , the international rating agency, lowers the 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. ratings for BANK ONE CORPORATION and its subsidiaries. Additionally, BANK ONE CORPORATION's 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. rating is lowered to `F1' from `F1+', while the short-term rating for the banking units are 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+'. Fitch IBCA also affirms the Individual rating for selected banking units, with the exception of First USA, which is lowered to `B/C' from `B'. A detailed listing of BANK ONE rating actions follows the commentary. The rating action reflects Fitch IBCA's assessment of BANK ONE's credit profile and overall franchise strength after taking into account management's revised outlook for the First USA credit card operation. Although BANK ONE possesses a solid franchise, with particularly noteworthy strengths in commercial middle-market The term middle-market may refer to either a type of newspaper or a type of company. A middle-market newspaper is one that attempts to cater to readers who want some entertainment value from their newspaper as well as adequate serious coverage of significant news banking and consumer branch operations, the prospective long-term `advantages' associated with First USA have declined - thereby weakening weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. the diversification DiversificationA risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. benefits envisioned at the time of the company's Oct. 1998 formation. We view this as a material change given the unit's size and related impact on BANK ONE. Positively, Fitch IBCA acknowledges that management is taking appropriate steps to address operational weaknesses and restore earnings power within the credit card operation. However, the ultimate success of these efforts is, to a certain extent, dependent upon environmental factors that are outside of management's direct control. Looking forward, Fitch IBCA will continue to monitor BANK ONE's progress against its 2000 business plan. In this context, Fitch IBCA believes BANK ONE's revised ratings adequately reflect foreseeable fore·see tr.v. fore·saw , fore·seen , fore·see·ing, fore·sees To see or know beforehand: foresaw the rapid increase in unemployment. business risks. As a result, we have shifted our credit outlook to stable from negative. --BANK ONE CORPORATION: Senior debt lowered to `A+' from `AA-`. Subordinated debt lowered to `A' from `A+'. Short- term obligations lowered to `F1' from `F1+'. Individual rating affirmed at `B'. Support rating affirmed at `5'. --FCNBD Capital I: Capital securities lowered to `A' from `A+'. --Banc One Financial Corp: Commercial paper rating lowered to `F1' from `F1+'. Bank Subsidiaries: --American National Bank & Tr. Co.: Senior obligations and deposits downgraded to `AA-/F1+' from `AA/F1+'. Individual rating affirmed at `A/B'. Support rating affirmed at `3'. --Bank One, NA (Chicago): Senior obligations and deposits downgraded to `AA-/F1+' from `AA/F1+'. Individual rating affirmed at `B'. Support rating affirmed at `2'. --Bank One, NA (Columbus): Senior obligations and deposits downgraded to `AA-/F1+' from `AA/F1+'. Individual rating affirmed at `A/B'. Support rating affirmed at `3'. --Bank One Arizona, NA: Senior obligations and deposits downgraded to `AA-/F1+' from `AA/F1+'. Individual rating affirmed at `A/B'. Support rating affirmed at `3'. --Bank One Colorado, NA: Senior obligations and deposits downgraded to `AA-/F1+' from `AA/F1+'. Support rating affirmed at `3'. --Bank One Illinois, NA: Senior obligations and deposits downgraded to `AA-/F1+' from `AA/F1+'. Support rating affirmed at `3'. --Bank One Indiana, NA: Senior obligations and deposits downgraded to `AA-/F1+' from `AA/F1+'. Individual rating affirmed at `A/B'. Support rating affirmed at `3'. --Bank One Kentucky, NA: Senior obligations and deposits downgraded to `AA-/F1+' from `AA/F1+'. Support rating affirmed at `3'. --Bank One Louisiana, NA: Senior obligations and deposits downgraded to `AA-/F1+' from `AA/F1+'. Individual rating affirmed at `B'. Support rating affirmed at `3'. --Bank One Michigan: Senior obligations and deposits downgraded to `AA-/F1+' from `AA/F1+'. Individual rating affirmed at `A/B'. Support rating affirmed at `3'. --Bank One Oklahoma, NA: Senior obligations and deposits downgraded to `AA-/F1+' from `AA/F1+'. Support rating affirmed at `3'. --Bank One Texas, NA: Senior obligations and deposits downgraded to `AA-/F1+' from `AA/F1+'. Individual rating affirmed at `B'. Support rating affirmed at `3'. --Bank One Utah, NA: Senior obligations and deposits downgraded to `AA-/F1+' from `AA/F1+'. Support rating affirmed at `3'. --Bank One West Virginia, NA: Senior obligations and deposits downgraded to `AA-/F1+' from `AA/F1+'. Support rating affirmed at `3'. --Bank One Wisconsin, NA: Senior obligations and deposits downgraded to `AA-/F1+' from `AA/F1+'. Support rating affirmed at `3'. --First USA Bank, NA: Senior obligations and deposits downgraded to `AA-/F1+' from `AA/F1+'. Individual rating lowered to `B/C' from `B'. Support rating affirmed at `3'. $10 bln mixed shelf registration: --BANK ONE CORPORATION: Senior debt issuance lowered to `A+' from `AA-`, subordinated debt, preferred stock and capital securities issuances lowered to `A' from `A+'. Euro medium-term note programs: --BANK ONE CORPORATION: Issuances lowered to `A+' from `AA-`. --Bank One, NA (Chicago): Issuances lowered to `AA-` from `AA'. --Bank One, NA (Columbus): Issuances lowered to `AA-` from `AA'. --First USA Bank, NA: Issuances lowered to `AA-` from `AA'. Commercial paper programs: --BANK ONE CORPORATION: 3(a)3 commercial paper program lowered to `F1' from `F1+'. --Banc One Financial Corp.: 4(2) commercial paper program lowered to `F1' from `F1+'. NOTES: FITCH IBCA'S SUPPORT AND INDIVIDUAL RATINGS FOR BANKS Fitch IBCA's Individual ratings assess how a bank would be viewed if it were entirely independent and could not rely on external support. Its Support ratings deal with the question of whether a bank would receive support form its owners or from the state if it were to get in to difficulty. These ratings are not debt ratings but rather, respectively, an assessment of the intrinsic strength of a bank and of any level of outside support that may, or may not, be available to it. |
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