Fitch Lowers Riggs Individual Rating; Rating Watch to Negative.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 lowered the individual ratings for Riggs National Corporation and Riggs Bank National Association to 'D/E' from 'D'. All other ratings for Riggs National Corporation (RIGS; long-term senior rating of 'B') and its subsidiaries remain unchanged. Additionally, Fitch revised RIGS' Rating Watch to Negative from Evolving (for additional detail, see comment dated Jan. 28, 2005 and available on the Fitch Ratings web site at www.fitchratings.com). The downgrade of the individual rating reflects Fitch's continuing concerns regarding RIGS' deteriorating financial condition given the company's recently announced fourth quarter 2004 results, which reflected a $60 million loss. The loss resulted from a substantial level of expenses related to RIGS' compliance with the Bank Secrecy Act The Bank Secrecy Act of 1970 (or BSA, or otherwise known as the Currency and Foreign Transactions Reporting Act) requires U.S.A. financial institutions to assist U.S. government agencies to detect and prevent money laundering. and multiple investigations. The company incurred a $16 million fine (remains subject to change) to the U.S. Department of Justice, reserved $8 million for 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 incurred $17 million in expenses related to the sale of its international businesses. The revision to Rating Watch Negative from Evolving reflects the news that RIGS' board of directors has unanimously rejected the revised terms and conditions demanded by The PNC Financial Services PNC Financial Services (NYSE: PNC) is a U.S.-based financial services corporation, with assets of $92.0 billion. PNC operations include a regional banking franchise operating primarily in eight states and the District of Columbia, specialized financial businesses serving Group, Inc. (PNC PNC Purdue University North Central (Westville, Indiana) PnC Point 'n Click PNC Police National Computer PNC People's National Congress (Guyana) PNC People's National Congress ) for that merger to close and filed suit against PNC in Superior Court for The District of Columbia District of Columbia, federal district (2000 pop. 572,059, a 5.7% decrease in population since the 1990 census), 69 sq mi (179 sq km), on the east bank of the Potomac River, coextensive with the city of Washington, D.C. (the capital of the United States). . This suit seeks to hold PNC responsible for its wrongdoing wrong·do·er n. One who does wrong, especially morally or ethically. wrong  do and for the resulting damages it has caused, or, alternatively, to require PNC to uphold its end of the agreement and proceed with the merger in accordance with the agreement. Furthermore RIGS sent a letter informing PNC that its actions constituted an anticipatory repudiation of the merger agreement between the two entities and that RIGS is now entitled to discuss merger combinations with other interested parties. The Negative Watch is reflective of the greatly reduced possibility that the PNC deal will go through and the current absence of an agreement with another acquirer. The following ratings have been downgraded and placed on Rating Watch Negative by Fitch: Riggs National Corporation -- Individual rating to 'D/E' from 'D'. Riggs Bank National Association -- Individual rating to 'D/E' from 'D'. The following ratings have been placed on Rating Watch Negative by Fitch: Riggs National Corporation -- Short-term 'B'; -- Long-term 'B'; -- Subordinated debt 'CCC'; -- Support '5'. Riggs Bank National Association -- Short-term 'B'; -- Short-term deposit 'B'; -- Long-term 'B+'; -- Long-term deposit 'BB-'; -- Support '5'. Riggs Capital -- Preferred stock 'C'. Riggs Capital II -- Preferred stock 'C'. |
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