NEW YORK -- Thomson BankWatch upgraded the debt on two of Mellon Bank Corp.'s subsidiaries, after the Pittsburgh-based bank finalized its $1.85 billion purchase of mutual fund giant Dreyfus Corp.

Mellon Financial Co.'s senior debt was raised to A-plus from single A and Mellon Bank N.A.'s subordinated debt was raised to A-plus from single A.

Even though some analysts have pointed to Dreyfus's 9%, or $6.8 billion, drop in fund assets through midyear, BankWatch remains positive on Mellon's potential for earnings growth.

Nancy Pellegrino, an analyst ,at BankWatch, said the drop in assets was "a little disappointing, but it makes sense considering what's going on in the [stock] market."

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