Fitch Ratings Upgrades Sovereign Bancorp.Business Editors NEW YORK--(BUSINESS WIRE)--March 10, 2003 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 upgraded the long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. rating of Sovereign Bancorp, Inc. (SOV SOV Share Of Voice SOV Single Occupancy Vehicle SOV Subject Object Verb SOV Separation of Variables (differential equations) SOV Shut Off Valve SOV Space Operations Vehicle SOV Scars of Velious (Everquest) ) to 'BBB-' from 'BB+'; as well as the long-term debt rating of Sovereign Bank, its thrift thrift: see leadwort. subsidiary, to 'BBB' from 'BBB-'. Additionally, Fitch rates Sovereign Bank's new 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". issuance 'BBB-'. Following the upgrade, the Rating Outlook is revised to Stable from Positive. A complete list of SOV's ratings is listed below. The rating upgrades and change in the Rating Outlook largely reflect the progress the company has made in improving its risk profile and financial flexibility. Over the course of the past 2 years, management has strengthened the company's capital structure through a disciplined program of earnings retention and stock and trust preferred issuances. The continuing fortification fortification, system of defense structures for protection from enemy attacks. Fortification developed along two general lines: permanent sites built in peacetime, and emplacements and obstacles hastily constructed in the field in time of war. improves the company's ability to withstand risk related shocks. Parental debt contraction, through redemptions and maturities, relieves Sovereign Bank's dividend obligations and financing pressures. Additionally, the recent repositioning repositioning Laparoscopic surgery The changing of a Pt's position during a procedure to improve access or visualization of the operative field, which may be linked to complications, as it changes anatomic planes of operation. Cf Laparoscopic surgery. of debt from the parent to the bank through a series of transactions, including a new subordinated debt issuance at Sovereign Bank, augments the necessary patient restructuring that the company has executed to date. The ratings also take into account the company's solid New England New England, name applied to the region comprising six states of the NE United States—Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, and Connecticut. The region is thought to have been so named by Capt. , Pennsylvania and New Jersey banking franchises, which provide Sovereign Bank with a growing stable core funding base and a healthy liquidity position. Further, Fitch's ratings incorporate SOV's solid risk management and reasonable asset reserve positions. The rating upgrades are based on Fitch's expectations that management will continue to bear out the deliberate process of capital improvement and parental debt reduction. Sovereign Bancorp, Inc Rating Upgrades -- Short-term to 'F3' from 'B'; -- Long-term Senior to 'BBB-'from 'BB+'; -- Subordinated to 'BB+' from 'BB'; Ratings Affirmed -- Individual 'C'; -- Support '5'; -- Long-term Rating Outlook revised to Stable from Positive. Sovereign Bank Rating Upgrades -- Short-term to 'F2' from 'F3'; -- Long-term Senior to 'BBB' from 'BBB-'; -- Long-term Deposits to 'BBB+' from 'BBB'; New Rating -- Subordinated 'BBB-'; Ratings Affirmed -- Short-term deposit 'F2'; -- Individual 'B/C'; -- Support '5'; -- Long-term Rating Outlook Stable. Sovereign Capital Trust I and II Rating Upgrades -- Preferred Stock to 'BB' from 'BB-'. ML Capital Trust I Rating Upgrades -- Preferred Stock to 'BB' from 'BB-'. Sovereign Real Estate Investment Trust Rating Upgrades -- Preferred Stock to 'BB+' from 'BB'. |
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