MOODY'S RAISES LONG-TERM RATING OF UNION PLANTERS CORPORATION (SUBORDINATED) TO Baa2 AND UNION PLANTERS NATIONAL BANK FOR LONG-TERM DEPOSITS TO A2
New York, 12-05-96 -- Moody's Investors Service raised the subordinated debt rating of Union Planters Corporation (UPC) to Baa2 from Baa3. The rating agency also raised the rating of Union Planters National Bank for long-term deposits to A2 from A3. The rating action follows the completion of UPC's acquisition of the Memphis-based Leader Financial Corporation (Leader), which has been accounted for as a pooling of interest. Leader has been merged into UPC, which remains the continuing corporation.
The rating agency noted that the upgrade of UPC ratings is based upon enhanced financial fundamentals and strengthened franchise of the new UPC. This in-market merger has created the largest bank holding company based in Tennessee with assets of about $14.5 billion. Both UPC and Leader have historically been key players in the Memphis and greater Tennessee markets. UPC's subsidiaries consist of commercial banks and thrifts. Its main lines of business focus on community banking and consumer lending. Leader is a thrift organization with a strong mortgage banking franchise. Its niche line of business consists of servicing GNMA portfolios and FHA/VA mortgage lending.
The following ratings were raised:
Union Planters Corporation -- subordinated debt to Baa2 from Baa3.
Union Planters National Bank -- rating of the bank for long- and short-term deposits to A2/Prime-1 from A3/Prime-2; rating of the bank for long- and short-term other senior obligations to A2/Prime-1 from A3/Prime-2; and counterparty rating to A2 from A3.
The following ratings were confirmed:
Union Planters National Bank -- bank financial strength rating at C.
Union Planters Corporation is a bank holding company headquartered in Memphis, Tennessee with assets of $11.5 billion as of September 30, 1996. As of the same date, Leader Financial Corporation recorded assets of about $3.2 billion.
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