MOODY'S CONFIRMS CREDIT RATINGS OF NATIONAL CITY CORPORATION (SENIOR AT A1) AND BANK SUBSIDIARIES, AND REVIEWS LONG-TERM RATINGS OF INTEGRA FINANCIAL CORPORATION (SUBORDINATED AT Baa2) AND BANK SUBSIDIARY FOR POSSIBLE UPGRADE.
New York, 8/28/1995 -- Moody's Investors Service confirmed the ratings of National City Corporation (long-term senior debt of A1) and its National City Bank subsidiaries (long-term deposits Aa3). The long-term ratings of Integra Financial Corporation (long-term subordinated debt of Baa2) and its subsidiary Integra Bank (long-term deposits of A2) were placed under review for possible upgrade. The Prime-1 short term deposit rating of Integra Bank was also confirmed. Moody's said that its action followed the announcement of an agreed offer by National City Corporation for Integra Financial Corporation.
Moody's noted that National City's (NCC) acquisition of Integra is consistent with NCC's strategy to build its retail and commercial banking franchise in the mid-west. The agency noted that NCC's capital ratios will improve from the acquisition. Moody's also said that Integra had built up a major business in western Pennsylvania through a series of acquisitions of regional banking institutions over the past six years. Its position is particularly strong in retail banking, and this contributes to its substantial profitability. Moody's noted that the company has high capital levels. The company's acquisitions have inflated its levels of impaired assets in the past. However, these have been well reserved, and following recent disposals of non-core assets, the company's asset quality has continued to improve. The three bank subsidiaries of Integra Financial Corporation -- North, Pittsburgh, and South -- were merged into a single legal entity at the end of May 1995.
Moody's said that its review of Integra's ratings will focus on the position of Integra Financial and Integra Bank within the legal and business structure of the NCC group.
The following ratings were confirmed:
National City Corporation -- the long-term debt ratings of A1 (senior) and A2 (subordinated).
The seven National City Banks (Cleveland, Columbus, Dayton, Indiana, Kentucky, Northwest, and Northeast): the ratings of the banks for their deposits of Aa3 (long-term) and Prime-1 (short-term), the Aa3 counterparty ratings, the Aa3 and Prime-1 ratings of the banks for their long-term and short-term other senior obligations, the Aa3 rating of the long-term senior debt of the Dayton, Northeast and Northwest banks, the A1 subordinated rating of the long-term subordinated debt of the Cleveland, Columbus, Dayton, Northeast and Northwest banks, and the financial strength ratings of B+ (Cleveland) and B (Columbus, Columbus, Dayton, Kentucky, Northeast and Northwest banks).
National City Credit Corporation -- the Prime-1 rating of the company for its commercial paper.
Integra Bank -- the Prime-1 rating of the bank for its short-term deposits and other senior obligations.
The following ratings were placed on review for possible upgrade:
Integra Financial Corporation -- the Baa2 long-term subordinated debt rating.
Integra Bank -- the A2 rating of the bank for its long-term deposits, senior debt, other senior obligations, and counterparty, and the C+ financial strength rating.
National City Corporation is a bank holding company headquartered in Cleveland, Ohio, with total assets at end-June 1995 of $35 billion.
Integra Financial Corporation, based in Pittsburgh, Pennsylvania, is a bank holding company with assets at end-June 1995 of $14.8 billion.
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