The rating agencies took the following actions last week:
California Federal Bank: Standard & Poor's Corp. revised its rating outlook to stable from positive. Preferred stock was affirmed at CCC.
"The revised outlook reflects further deterioration in profitability, driven by higher-than-anticipated losses on real-estate-related nonperforming assets." the agency said.
Continental Bank Corp.: IBCA Ltd., the European rating agency, upgraded long-term debt to BBB-plus from BBB and short-term debt to A2 from A3.
The subsidiary Continental Bank's long-term debt was raised to A-minus from BBB-plus.
"Management has taken steps which have significantly reduced the company's risk profile," IBCA said.
Great Western Financial Corp.: Fitch Investors Service Inc. downgraded senior debt to BBB-plus from A and preferred stock to BBB-minus from BBB.
The subsidiary Great Western Bank's senior debt was cut to A-minus from A, subordinated debt to BBB-plus from A-minus, and commercial paper to F2 from F1.
"The downgrades reflect the company's subpar profitability due to high expenses relative to revenue generation and strong competitive pressures, continued asset quality, problems due to the California economic recession and the uncertainty surrounding additional provisions, and charges for bulk nonperforming asset sales and cost-cutting measures," Fitch said.
MBNA Corp.: Standard & Poor's upgraded senior debt to BBB-plus from BBB and subordinated debt to BBB from BBB-minus.
S&P also rised the subsidiary MBNA America Bank's senior bank notes to A-minus from BBB-plus, subordinated bank notes to BBB-plus from BBB, uninsured certificates of deposit to A-minus/A2 from BBB-plus/A2, and deposit notes to A-minus from BBB-plus.
The agency said the credit card bank's "market position enables it to deal more effectively than less competitive firms with pricing compression and an increasingly saturated customer base."
TCF Financial Corp.: Standard & Poor's affirmed B rating on subordinated debt and revised the thrift holding company's outlook to positive from stable. The company owns TCF Bank Savings FSB, Minneapolis.
"The outlook revision reflects continued improvement in both TCF's financial profile and operating profile, aided in part by growth in the company's community banking franchise," S&P said.
Earlier this year. the company bought Republic Capital Group Inc., a Milwaukee-based thrift holding company with operations in Wisconsin and Illinois.
It also bought $232 million in deposits and 15 branches of First Federal Savings and Loan Association, Pontiac, Mich., from the Resolution Trust Corp.
