Standard & Poor's Ratings Group placed about $750 million of Shawmut National Corp. debt on credit watch with positive implications, in reaction to Shawmut's announced merger with Fleet Financial Group.

The agency also affirmed its ratings on about $1 billion of Fleet debt, revising its long-term rating outlook on the issues to "positive."

S&P noted the merger would create a regional powerhouse, pointing out that the combination would result in one of the 10 largest banking companies in the nation and the largest institution in New England, with $80 billion in assets.

The agency also cited the estimated $400 million of annual cost savings due to the merger.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.