In Brief: S&P Places PNC Ratings on Credit Watch

Standard & Poors Corp. recently placed its ratings of PNC Bank Corp. on credit watch with negative implications, citing the potential impact of the adverse interest rate environment the the company's earnings.

About $1 billion of rated debt of the holding company and PNC Funding Corp. is affected.

"While bank management has publicly indicated that a significant decline in profitability for 1995 is expected, continued interest rate increases, coupled with potential costs associated with hedging, are likely to result in lower earnings and risk adjusted capital levels for a longer time than is appropriate at the current rating level," the agency said.

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