In Brief: New First Union Unit Gets a Boost from S&P

Standard & Poor's raised its rating on $25 million of Centerbank's subordinated debt to A, from BB-plus. It also raised the bank's long-term counterparty credit rating to A- plus from BBB-minus.

The ratings action follows the completion of the acquisition of Centerbank by First Union Bank of Connecticut, a unit of the $133 billion Charlotte, N.C.-based First Union Corp.

The ratings have been removed from CreditWatch, where they were placed June 17.

The long-term ratings outlook is stable.

S&P said Centerbank's creditors benefit from the financial and managerial resources associated with the significantly more diversified First Union.

The acquisition enhances First Union's market presence in Connecticut and provides cost savings opportunities redundant operations, S&P said.

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