Fitch Rts Union Planters Bank Sen Nts 'BBB+'; Affs Other Rtgs.Business Editors CHICAGO--(BUSINESS WIRE)--June 5, 2002 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 assigned a 'BBB+' rating to Union Planters Planters is an American snack food company under Kraft Foods manufacturing, best known for its nuts and the Mr. Peanut icon that symbolizes them. Started by Italian immigrants Amedeo Obici and Mario Peruzzi in Wilkes-Barre, Pennsylvania, in 1906, it was incorporated in 1908 Bank's recent sale of Senior Notes in the amount of $600,000,000. Union Planters Bank is the primary operating subsidiary An operating subsidiary is a business term frequently used within the United States railroad industry. In the case of a railroad, it refers to a company that is a subsidiary but operates with its own identity and rolling stock. of Union Planters Corporation (UPC (Universal Product Code) The standard bar code printed on retail merchandise, which is administered by GS1 US, Brussels, Belgium and Lawrenceville, NJ (www.gs1.org). ), headquartered in Memphis, TN. The proceeds will be used for general corporate purposes. The Rating Outlook for the Senior Notes is Stable. Fitch Ratings has also 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. the current ratings for UPC and its affiliates. (A complete list of ratings follows at the end of this report.) Fitch's rating assessment is based on UPC's good recent earnings performance, and solid liquidity and capital positions. Management has established a franchise optimization optimization Field of applied mathematics whose principles and methods are used to solve quantitative problems in disciplines including physics, biology, engineering, and economics. program, called UPExcel, to improve efficiency, strengthen the balance sheet, and enhance revenues. UPExcel, which is expected to be fully implemented in 2003, has already had significant impact. Capital, as measured by the ratio of Tangible Common Equity to Tangible Total Assets has climbed from 5.77% at the end of 2000 to 7.39% in 1Q02. Liquidity has also increased, as the sale of long-term securities and other assets other assets Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately. has reduced the need for borrowed funds. Management's efforts have also been successful in controlling expenses and improving the efficiency ratio. Asset quality measures have deteriorated in recent quarters, mirroring the weakness in the U.S. economy. However, Fitch believes that problem asset levels are manageable. Fitch notes in this regard that UPC is primarily a middle market and community bank lender, and does not have undue exposure to large syndicated corporate loans. Ratings Affirmed, Stable Outlook Assigned: Union Planters Bank, N.A. -- Short Term Deposits affirmed 'F1' -- Long-Term Senior affirmed 'BBB+'; -- Long-Term Subordinated Debt affirmed 'BBB'; -- Preferred Stock affirmed 'BBB'; -- Individual affirmed 'B/C'; -- Support affirmed '5'. Union Planters Corporation -- Short-Term Obligations affirmed 'F2'; -- Long-Term Senior affirmed 'BBB+'; -- Long-Term Subordinated Debt affirmed 'BBB'; -- Preferred Stock affirmed 'BBB'; -- Individual affirmed 'B/C'; -- Support affirmed '5'. Union Planters Capital Trust I -- Trust Preferred Securities affirmed 'BBB'. |
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