Standard & Poor's Corp. has assigned an A-minus/A-2 rating to Old National Bancorp's proposed $150 million medium-term note program.

At the same time, S&P has affirmed its A/A-1 counterparty and CD ratings on the primary operating subsidiary, Old National Bank of Evansville, Ind., as well as its BBB-plus subordinated debt rating and A-minus long-term counterparty rating on Old National Bancorp., also of Evansville.

The outlook on both entities has been cut to negative from stable.

S&P said the ratings reflect Old National's "stable operating performance, conservative risk profile, and strong capitalization. The outlook revision is a result of a modest increase in balance sheet leverage, and recent initiatives in consumer finance activities that indicate an increasing risk appetite. Additionally, profitability measures remain mediocre and below that of similarly rated peers."

- S&P CreditWire

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