By Saabira Chaudhuri
Fitch Ratings has raised its outlook on M&T Bank Corp. (MTB)
and SunTrust Banks Inc. (STI), part of a slew of actions the
ratings firm took Tuesday on large regional banks.
Fitch said its outlook raise on M&T reflects "the
consistency of the company's performance during a difficult
operating environment," while its action on SunTrust reflects the
company's solid liquidity profile, sound capital position, and
improving asset quality.
Fitch said a meaningful upward rating momentum is unlikely for
large regional banks as a group, as they already represent some of
the highest-rated banks in Fitch's global rating universe.
But the ratings firm said that "a few institutions whose credit
profiles have been demonstrating continued relative progress, such
as M&T and SunTrust could see ratings improvement over the
near-to-intermediate term."
Fitch raised Comerica Inc.'s (CMA) outlook to stable from
negative, citing the company's "above-peer tangible capital base,
improved fundamentals such as asset quality performance, and strong
funding profile."
Separately, Fitch raised its rating on Fifth Third Bancorp
(FITB) by one notch from A-minus to A, citing its strong earnings
profile. "The company's earnings continue to trend above peer
averages, and provide for good capital generation," said Fitch.
The ratings firm raised its rating on Huntington Bancshares Inc.
(HBAN) by one notch from triple-B-plus to A-minus, citing its "good
earnings profile, solid capital and liquidity position, and stable
asset quality performance."
Write to Saabira Chaudhuri at saabira.chaudhuri@wsj.com
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