New York, July 12, 2021 -- Moody's Investors Service, (Moody's) has today taken rating actions
on 16 US banks. The rating actions were driven by revisions to
Moody's Advanced Loss Given Failure (Advanced LGF) analysis,
which is applied to banks operating in jurisdictions with Operational
Resolution Regimes, following the publication of Moody's updated
Banks methodology on 9 July 2021. The methodology is available
at this link: https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1269625
A full list of affected ratings and assessments can be found at the end
of this press release.
A separate rating announcement for U.S. Bancorp can be found
here: https://www.moodys.com/research/--PR_449254.
A separate rating announcement for TD Bank US Holding Company can be found
here: https://www.moodys.com/research/--PR_447748.
All other US banks were unaffected by today's rating actions and
the update of the Banks methodology.
RATINGS RATIONALE
Today's rating actions on 16 US banks and branches were driven by revisions
to the Advanced Loss Given Failure (LGF) analysis within Moody's updated
Banks methodology.
Certain ratings and outlooks were impacted by revised notching guidance
table thresholds at lower levels of subordination and volume in the liability
structure. For US banks that are subsidiaries of overseas parents,
the rating actions also reflect Moody's view that group-wide resolutions
coordinated in a unified manner will be more common following the requirement
to issue internal loss-absorbing capacity (ILAC), leading
to a likely transfer of losses from subsidiaries to parents at the point
of failure. For banks that are subsidiaries of international parents
and subject to ILAC requirements, the rating actions reflect the
required and expected issuance of such instruments.
RATINGS RATIONALE FOR INDIVIDUAL BANKS
- Bank of the West
The ratings affirmation reflects Moody's expectation that Bank of
the West will not be resolved in a unified manner alongside its overseas
parent, BNP Paribas (BNPP, long-term senior unsecured
Aa3 stable, baseline credit assessment (BCA) baa1). Moody's
has not altered its rating approach for Bank of the West in response to
the methodology change, other than applying the revised notching
guidance table thresholds. Its Advanced LGF analysis does not include
the internal loss absorbing capacity (ILAC) issued by the US intermediate
holding company, BNP Paribas USA Inc. (BNPP USA), to
BNPP. The perimeter for this analysis remains that of Bank of the
West, as opposed to that of BNPP USA and Moody's continues
to apply a 13% loss rate in its Advanced LGF analysis of the bank,
consistent with other US regional banks that are subject to Title I resolution.
This approach differs from most other US banking subsidiaries with foreign
ownership.
Bank of West has a two-notch differential in standalone BCA with
its parent, reflecting its stronger standalone credit fundamentals
and taking into consideration that its operations are distinct and independently
funded, and reflecting the fact that it operates in different geographies
from BNPP, including BNPP's other US businesses. Bank
of the West operates a commercial and retail bank in the western US,
with very little client overlap with its parent. Moody's
views Bank of the West's correlation and potential contagion risk
with its parent as low. This also results in ratings and assessments
receiving no uplift for affiliate support from the bank's ownership
by BNPP, although Moody's still assumes a high probability
of affiliate support from BNPP.
- Capital One Financial Corporation
Moody's upgraded certain ratings for Capital One Financial Corporation's
two banking subsidiaries. Capital One Bank (USA), N.A.'s
and Capital One, N.A.'s senior unsecured bank
note program and subordinate bank note program ratings were upgraded to
(P)A3 from (P)Baa1 and their issuer ratings and senior unsecured ratings
to A3 from Baa1. The subordinate rating of Capital One Bank (USA),
N.A. was also upgraded to A3 from Baa1. These ratings
were upgraded by one notch, as under Moody's Advanced LGF
analysis they are now rated in line with the banks' BCAs,
which better captures the risk characteristics of these classes of debt
following the rating agency's revised view around the distribution
of losses post failure.
- City National Bank
The upgrade of City National Bank's issuer and dated subordinated
bank debt ratings to A2 from A3 reflects Moody's expectation that
the bank will be resolved in a unified manner alongside its Canadian parent,
Royal Bank of Canada (RBC, LT deposits Aa2 stable/LT junior senior
unsecured debt A2 stable, BCA a3). Moody's has also
revised its loss rate assumption for City National Bank to 8% from
13%, reflecting the rating agency's view that a group-wide
resolution coordinated in a unified manner would also result in a more
orderly going-concern resolution for City National Bank.
The rating agency believes that the inclusion of the internal loss absorbing
capacity (ILAC) issued by the US intermediate holding company to its parent
in its Advanced LGF analysis will result in a further one notch of support
uplift to the issuer rating and dated subordinated bank debt rating,
due to the greater levels of protection afforded to the bank's senior
creditors.
Moody's has not reduced its expectation of a high probability of
affiliate support for City National Bank from its parent because it believes
that the presence of ILAC is additive to any extraordinary support the
bank might receive from its parent prior to the point of failure.
- Deutsche Bank Trust Corporation
The rating action reflects Moody's expectation that Deutsche Bank
Trust Corporation and its rated subsidiaries, including Deutsche
Bank Trust Company Americas (DBTCA), will be resolved in a unified
manner alongside Deutsche Bank AG (long-term deposit A3,
long-term senior unsecured A3, BCA ba1, review for
upgrade). This has different implications for DBTCA's various
rated obligations.
The baa1 standalone BCAs and adjusted BCAs of DBTCA and its sister trust
companies were placed on review for downgrade. During the review,
Moody's will reassess the intrinsic financial strength of Deutsche
Bank Trust Corporation and its rated subsidiaries, and the role
that these entities will play in the execution of the broader Deutsche
Bank group's strategy to evaluate the appropriateness of the current
three-notch differential between the BCAs of the US entities and
Deutsche Bank AG. Moody's has indicated that the notching
gap between the BCAs of entities within same banking groups that are subject
to unified resolution should typically not be wider than one notch.
During the review Moody's will examine Deutsche Bank's group
resolution plan to determine the US resolution perimeter, the possible
inclusion of internal loss absorbing capacity outstanding at DB USA Corporation
and the loss rate applied in its Advanced LGF analysis for Deutsche Bank
Trust Corporation. The outcome of this analysis will likely lead
to different implications for different creditors of Deutsche Bank Trust
Corporation.
The Baa2 long-term issuer rating of Deutsche Bank Trust Corporation,
the Baa1/Prime-2 Counterparty Risk Ratings and the assessments
of DBTCA and its sister trust companies were placed on review for upgrade,
whereas the A2 long-term deposit and Prime-1 short-term
deposit ratings of DBTCA and its sister trust companies were placed on
review for downgrade. If a downgrade of DBTCA's BCA is limited
to one notch, this would likely lead to the confirmation of the
A2 long-term deposit and Prime-1 short-term deposit
ratings of DBTCA and its sister trust companies. Moody's
expects to conclude its review at the same time as the completion of the
review of the ratings of Deutsche Bank AG.
- Discover Financial Services
Moody's has taken rating actions on certain ratings for Discover
Bank, the banking subsidiary of Discover Financial Services.
Discover Bank's long-term subordinate rating of Baa2 was
upgraded by one notch, as under Moody's Advanced LGF analysis
it is now rated in line with its standalone BCA, which better captures
the risk characteristics of this class of debt following the rating agency's
revised view around the distribution of losses post failure. Additionally,
due to the aforementioned rating upgrade, the long term and short
term deposit ratings of the bank were placed on review for downgrade as
a result of potential shifts in the management of the capital structure.
- Fifth Third Bancorp
Moody's has upgraded certain bank-level ratings for Fifth
Third Bancorp. Fifth Third Bank, National Association's and
MB Financial Bank, N.A.'s long-term subordinated
debt ratings were upgraded by one notch to A3 from Baa1, as under
Moody's Advanced LGF analysis they are now rated in line with the bank's
standalone BCA. In the same rating action, Moody's downgraded
the long-term bank deposit ratings to A1 from Aa3, which
is two notches above the BCA. These rating levels better capture
the risk characteristics of these classes of debt and deposits following
the rating agency's revised view around the distribution of losses post
failure.
- HSBC USA
Moody's has confirmed the long-term deposit rating, counterparty
risk rating, and senior unsecured debt ratings of HSBC Bank USA,
N.A. at Aa3, confirmed the commercial paper rating
of HSBC USA Inc. at Prime-1, and placed on review
for upgrade the subordinated debt rating of HSBC Bank USA, N.A.
and all long-term ratings of HSBC USA Inc. (including the
A3 rating on subordinated debt issued by Republic New York Corporation).
The rating action reflects Moody's expectation that HSBC Bank USA,
N.A. and HSBC USA Inc. will be resolved in a unified
manner alongside their immediate parent HSBC North America Holdings Inc.
(HNAH) and their ultimate parent HSBC Holdings plc (A3 stable).
To reflect this, the rating agency has revised its Advanced LGF
analysis to include the instruments issued directly or indirectly by HNAH
to HSBC Holdings plc to comply with regulatory requirements for internal
loss absorbing capacity (ILAC) as well as to include all tangible banking
assets under HNAH within HSBC USA's resolution perimeter.
Moody's has also revised its firmwide loss rate assumption for HSBC
USA to 8% from 13%, reflecting the rating agency's
view that a group-wide resolution coordinated in a unified manner
would also result in a more orderly going-concern resolution for
HSBC USA.
HSBC USA's ratings had previously been on review for downgrade,
reflecting the impact of a lower adjusted BCA following the downgrade
of HSBC Holdings plc, as well as uncertainty over the potential
impact which the bank's recently announced exit from the US mass
market retail business could have on HSBC USA's levels of unsecured
long-term debt outstanding.
However, with the inclusion of the ILAC issued by HNAH in the Advanced
LGF analysis, as well as the reduced firmwide loss rate assumption,
Moody's has concluded that any likely further change in debt levels
resulting from the exit from US mass market retail business is unlikely
to reduce the protection afforded to the bank's depositors and creditors
sufficient to lead to a downgrade of those ratings. This was the
rationale for the confirmation of the Aa3 long-term counterparty
risk rating, deposit rating, senior unsecured debt,
and issuer ratings and the Aa3(cr) long-term counterparty risk
assessment for HSBC Bank USA, N.A., as well
as the confirmation of HSBC USA Inc's Prime-1 commercial
paper rating.
The review for upgrade on the subordinated debt at HSBC Bank USA,
N.A. and all of the long-term ratings of HSBC USA
Inc. reflects the potential for further uplift to those more junior
ratings under Moody's revised Advanced LGF analysis. This
would depend upon the extent of any reduction in tangible banking assets
following the exit from the US mass market retail business as well as
the extent to which HNAH choses to redeem any ILAC outstanding in excess
of its regulatory requirements, which Moody's will assess
during the review period.
- Huntington Bancshares Incorporated
The subordinated debt of TCF National Bank was assumed by Huntington National
Bank, the banking subsidiary of Huntington Bancshares Incorporated,
through its acquisition of TCF that closed on 9 June 2021. The
review for upgrade on the subordinated debt ratings for TCF National Bank
and FirstMerit Bank, N.A. will consider any future
balance sheet changes following the merger and the resulting levels of
subordination and volume in the liability structure of Huntington that
could affect the bank-level subordinated debt ratings. In
the same rating action, Moody's downgraded Huntington's long-term
bank deposit ratings to A1 from Aa3, which is two notches above
the BCA and changed the outlook to stable from negative.
Moody's also affirmed the bank's issuer and long-term
senior unsecured ratings at A3, in line with the bank's standalone
BCA and changed the rating outlook on these ratings to stable from negative.
These ratings now better capture the risk characteristics of these classes
of debt and deposits following the agency's revised view around
the distribution of losses post failure.
- JPMorgan Chase & Co.
The outlook on senior debt of JP Morgan Chase & Co (JPM) was changed
to positive from stable. The preliminary rating assessment of JP
Morgan Chase senior debt, as indicated by Moody's updated
Advanced LGF analysis, increased by one notch as of 31 March 2021.
However, the sustainability of the current levels of volume and
subordination that would underpin JPM's senior debt rating at a
higher rating level is uncertain in the context of expected balance sheet
growth and the Federal Reserve's indication that it is considering
modifying its supplementary leverage ratio requirements, which may
reduce JPM's need to issue long-term debt.
While the Federal Reserve's current rules would likely require JPM
to maintain the current levels of volume and subordination for its holding
company senior debt, that would indicate that an upgrade to A1 from
A2 may be appropriate, greater clarity on what changes the Federal
Reserve might make and their impact on JPM's senior debt volumes
is required before the ratings can be considered for upgrade.
- KeyCorp
KeyBank National Association's long-term bank deposit ratings
were downgraded to A1 from Aa3, as under Moody's revised Advanced
LGF analysis they are now rated two notches above the bank's standalone
BCA. These ratings better capture the risk characteristics of these
classes of debt and deposits following the rating agency's revised
view around the distribution of losses post failure.
- MUFG Americas Holdings Corporation
MUFG Union Bank, N.A. is the bank subsidiary of MUFG
Americas Holdings Corporation (collectively "MUAH"),
the intermediate holding company for the US operations of its parent,
Mitsubishi UFJ Financial Group, Inc. ("MUFG",
senior unsecured A1 stable). Moody's does not expect that
MUAH will be resolved in a unified manner alongside its overseas parent
because MUFG is headquartered in Japan, which the rating agency
does not view as an Operational Resolution Regime. Nonetheless,
the rating agency believes that the inclusion of the internal loss absorbing
capacity (ILAC) issued by MUAH to its parent in its Advanced LGF analysis
will result in a further one notch of support to the bank's senior
unsecured and subordinated creditors reflecting the greater levels of
protection afforded to those debt classes. The upgrade of the long-term
senior unsecured ratings resulted in the upgrade of the bank's short-term
bank note program to (P)Prime-1 from (P)Prime-2.
Moody's has not reduced its expectation of a very high probability
of affiliate support, because it believes that the presence of ILAC
is additive to any extraordinary support the bank might receive from its
parent prior to the point of failure.
- PNC Financial Services Group, Inc.
Moody's has downgraded the long-term bank deposit ratings
of PNC Bank, N.A. and BBVA USA to Aa3 from Aa2,
as under Moody's Advanced LGF analysis the deposits are now rated
two notches above the banks' a2 standalone BCAs. The outlooks
on the deposit ratings were changed to stable from negative. In
the same action, Moody's affirmed the banks' issuer
and senior unsecured ratings at A2, in line with the banks'
BCAs, and affirmed the A2 senior unsecured rating of National City
Bank. The outlooks on the issuer and senior unsecured ratings were
change to stable from negative. These ratings better capture the
risk characteristics of these classes of debt and deposits following the
agency's revised view around the distribution of losses post failure.
- Truist Financial Corporation
Truist Bank's long-term subordinated debt rating of A2 was
upgraded by one notch from A3, as under Moody's Advanced LGF
analysis they are now rated in line with the bank's a2 standalone
BCA. In the same rating action, Moody's downgraded
the long-term bank deposit rating to Aa3 from Aa2, which
is two notches above the BCA. These ratings better capture the
risk characteristics of these classes of debt and deposits following the
rating agency's revised view around the distribution of losses post
failure.
- Wells Fargo & Company
The upgrades to A1 from A2 of Wells Fargo & Company's senior
debt rating, and of the senior debt ratings of Wells Fargo Finance
LLC and Wells Fargo Canada Corporations, two subsidiaries whose
outstanding debt is guaranteed by the parent, better capture the
risk characteristics of this debt class following the rating agency's
revised view around the distribution of losses post failure. Moody's
added that Wells Fargo's liability structure at 31 March 2021,
viewed through the prism of its Advanced LGF analysis, suggests
that other debt classes, including bank-level senior and
subordinated debt and subordinated holding company debt, should
also be upgraded. However, Moody's has not increased
its ratings on those debt classes because it does not expect the respective
volume and subordination levels to be sustainable over time. Indeed,
the rating agency expects them to move back in line with Wells Fargo's
existing ratings configuration. This will occur from a combination
of reduced debt issuance and the eventual resumption of balance sheet
growth, which Moody's anticipates once Wells Fargo is released
from the Federal Reserve's asset cap.
FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS
The affected long-term deposit ratings, senior unsecured
debt ratings, issuer ratings, Counterparty Risk Ratings and
Counterparty Risk Assessments could be upgraded following an improvement
in the standalone creditworthiness of the banks.
The long-term deposit, senior unsecured debt ratings,
and issuer ratings could also be upgraded following a significant increase
in the stock of more junior bail-in-able liabilities.
The affected ratings and assessments could be downgraded following a substantial
deterioration in the standalone creditworthiness of the banks or following
a significant reduction in the stock of bail-in-able liabilities.
LIST OF AFFECTED RATINGS
Upgrades:
..Issuer: Wells Fargo & Company
....Senior Unsecured Regular Bond/Debenture
(Local Currency), Upgraded to A1 from A2, Negative
....Senior Unsecured Regular Bond/Debenture
(Foreign Currency), Upgraded to A1 from A2, Negative
.LT Issuer rating, Upgrade to A1 from A2, Negative
.Senior Unsecured MTN (Local Currency), Upgraded
to (P)A1 from (P)A2
.Senior Unsecured MTN (Foreign Currency), Upgraded
to (P)A1 from (P)A2
.Senior Unsecured Shelf (Local Currency), Upgraded
to (P)A1 from (P)A2
..Issuer: Wells Fargo Finance LLC
.Backed Senior Unsecured MTN (Local Currency), Upgraded
to (P)A1 from (P)A2
....Backed Senior Unsecured Regular Bond/Debenture
(Local Currency), Upgraded to A1 from A2, Negative
.Backed Senior Unsecured Shelf (Local Currency),
Upgraded to (P)A1 from (P)A2
.. Wells Fargo Canada Corporation
.Backed Senior Unsecured MTN (Local Currency), Upgraded
to (P)A1 from (P)A2
....Backed Senior Unsecured Regular Bond/Debenture
(Local Currency), Upgraded to A1 from A2, Negative
..Issuer: MUFG Union Bank, N.A.
.Senior Unsecured Bank Note Program, Upgraded to
(P)A2 from (P)A3
.Subordinate Bank Note Program, Upgraded to (P)A2
from (P)A3
.ST Bank Note Program, Upgraded to (P)P-1
from (P)P-2
.Commercial Paper, Upgraded to P-1 from P-2
.LT Issuer Rating, Upgraded to A2 from A3,
Stable
....Senior Unsecured Regular Bond/Debenture
(Local Currency), Upgraded to A2 from A3, Stable
..Issuer: Fifth Third Bank, National Association
.Subordinate Bank Note Program, Upgraded to (P)A3
from (P)Baa1
.... Subordinate Regular Bond/Debenture (Local
Currency), Upgraded to A3 from Baa1
..Issuer: MB Financial Bank, N.A.
.... Subordinate Regular Bond/Debenture (Local
Currency), Upgraded to A3 from Baa1
..Issuer: City National Bank
.LT Issuer Rating, Upgraded to A2 from A3,
Stable
....Subordinate Regular Bond/Debenture (Local
Currency), Upgraded to A2 from A3
..Issuer: Capital One Bank (USA), N.A.
.Senior Unsecured Bank Note Program (Local Currency),
Upgraded to (P)A3 from (P)Baa1
.Subordinate Bank Note Program (Local Currency),
Upgraded to (P)A3 from (P)Baa1
.LT Issuer Rating, Upgraded to A3 from Baa1,
Stable
....Senior Unsecured Regular Bond/Debenture
(Local Currency), Upgraded to A3 from Baa1, Stable
....Subordinate Regular Bond/Debenture (Local
Currency), Upgraded to A3 from Baa1
..Issuer: Capital One, N.A.
.Senior Unsecured Bank Note Program (Local Currency),
Upgraded to (P)A3 from (P)Baa1
.Subordinate Bank Note Program (Local Currency),
Upgraded to (P)A3 from (P)Baa1
.LT Issuer Rating, Upgraded to A3 from Baa1,
Stable
....Senior Unsecured Regular Bond/Debenture
(Local Currency), Upgraded to A3 from Baa1, Stable
..Issuer: Truist Bank
.Subordinate Bank Note Program (Local Currency),
Upgraded to (P)A2 from (P)A3
....Subordinate Regular Bond/Debenture (Local
Currency), Upgraded to A2 from A3
..Issuer: Discover Bank
....Subordinate Regular Bond/Debenture (Local
Currency), Upgraded to Baa2 from Baa3
Downgrades:
..Issuer: KeyBank National Association
.LT Deposit Note/CD Program, Downgrade to (P)A1 from
(P)Aa3
.LT Bank Deposits, Downgraded to A1 from Aa3,
Stable
..Issuer: PNC Bank, N.A.
.LT Bank Deposits, Downgraded to Aa3 from Aa2,
Stable from Negative
..Issuer: BBVA USA
.LT Bank Deposits, Downgraded to Aa3 from Aa2,
Stable from Negative
..Issuer: Fifth Third Bank, National Association
.LT Bank Deposits (Local Currency), Downgraded to
A1 from Aa3, Stable
.LT Deposit Note/CD Program, Downgraded to (P)A1
from (P)Aa3
..Issuer: Truist Bank
.LT Bank Deposits (Local Currency), Downgraded to
Aa3 from Aa2, Stable
..Issuer: Huntington National Bank
.LT Bank Deposits (Local Currency), Downgraded to
A1 from Aa3, Stable from Negative
Affirmations:
..Issuer: JPMorgan Chase & Co.
.LT Issuer Rating Affirmed A2, Positive from Stable
.Senior Unsecured MTN (Local Currency), Affirmed
(P)A2
.Senior Unsecured MTN (Foreign Currency), Affirmed
(P)A2
....Senior Unsecured Regular Bond/Debenture
(Local Currency), Affirmed A2, Positive from Stable
....Senior Unsecured Regular Bond/Debenture
(Foreign Currency), Affirmed A2, Positive from Stable
.Senior Unsecured Shelf (Local Currency), Affirmed
(P)A2
.. Bear Stearns Companies LLC. (The)
....Senior Unsecured Regular Bond/Debenture
(Local Currency), Affirmed A2, Positive from Stable
.. J.P. Morgan & Co. Incorporated
....Senior Unsecured Regular Bond/Debenture
(Local Currency), Affirmed A2, Positive from Stable
....Senior Unsecured Regular Bond/Debenture
(Foreign Currency), Affirmed A2, Positive from Stable
.. JPMorgan Chase Financial Company LLC
.Backed Senior Unsecured MTN (Local Currency), Affirmed
(P)A2
....Backed Senior Unsecured Regular Bond/Debenture
(Local Currency), Affirmed A2, Positive from Stable
....Backed Senior Unsecured Regular Bond/Debenture
(Foreign Currency), Affirmed A2, Positive from Stable
.Backed Senior Unsecured Shelf (Local Currency),
Affirmed (P)A2
..Issuer: PNC Bank, N.A.
.LT Issuer Rating Affirmed A2, Stable from Negative
....Senior Unsecured Regular Bond/Debenture
(Local Currency), Affirmed A2, Stable from Negative
.Senior Unsecured Bank Note Program, Affirmed (P)A2
..Issuer: BBVA USA
.LT Issuer Rating Affirmed A2, Stable from Negative
....Senior Unsecured Regular Bond/Debenture
(Local Currency), Affirmed A2, Stable from Negative
.Senior Unsecured Bank Note Program, Affirmed (P)A2
..Issuer: National City Bank
....Senior Unsecured Regular Bond/Debenture
(Local Currency), Affirmed A2, Stable from Negative
..Issuer: Bank of the West
.Adjusted Baseline Credit Assessment, Affirmed a2
.Baseline Credit Assessment, Affirmed a2
.LT Counterparty Risk Assessment, Affirmed A1(cr)
.ST Counterparty Risk Assessment, Affirmed P-1(cr)
.LT Counterparty Risk Rating (Local Currency), Affirmed
A2
.LT Counterparty Risk Rating (Foreign Currency),
Affirmed A2
.ST Counterparty Risk Rating (Local Currency), Affirmed
P-1
.ST Counterparty Risk Rating (Foreign Currency),
Affirmed P-1
.LT Issuer Rating Affirmed A3, Stable
.LT Bank Deposits (Local Currency), Affirmed Aa3,
Stable
.ST Bank Deposits (Local Currency), Affirmed P-1
..Issuer: Huntington National Bank
.LT Issuer Rating Affirmed A3, Stable from Negative
....Senior Unsecured Regular Bond/Debenture
(Local Currency), Affirmed A3, Stable from Negative
On Review for Downgrade:
..Issuer: Deutsche Bank National Trust Company
.... Adjusted Baseline Credit Assessment,
Placed on Review for Downgrade, currently baa1
.... Baseline Credit Assessment, Placed
on Review for Downgrade, currently baa1
.... ST Deposit Rating (Local Currency),
Placed on Review for Downgrade, currently P-1
.... LT Deposit Rating (Local Currency),
Placed on Review for Downgrade, currently A2, Ratings Under
Review from Stable
..Issuer: Deutsche Bank Trust Company Americas
.... Adjusted Baseline Credit Assessment,
Placed on Review for Downgrade, currently baa1
.... Baseline Credit Assessment, Placed
on Review for Downgrade, currently baa1
.... ST Deposit Rating (Local Currency),
Placed on Review for Downgrade, currently P-1
.... LT Deposit Rating (Local Currency),
Placed on Review for Downgrade, currently A2, Ratings Under
Review from Stable
..Issuer: Deutsche Bank Trust Company Delaware
.... Adjusted Baseline Credit Assessment,
Placed on Review for Downgrade, currently baa1
.... Baseline Credit Assessment, Placed
on Review for Downgrade, currently baa1
.... ST Deposit Rating (Local Currency),
Placed on Review for Downgrade, currently P-1
.... LT Deposit Rating (Local Currency),
Placed on Review for Downgrade, currently A2, Ratings Under
Review from Stable
..Issuer: Discover Bank
.... ST Bank Deposits (Local Currency),
Placed on Review for Downgrade, currently P-1
.... LT Bank Deposits (Local Currency),
Placed on Review for Downgrade, currently A2, Ratings Under
Review from Positive
On Review for Upgrade:
..Issuer: Deutsche Bank National Trust Company
.... LT Counterparty Risk Assessment,
Placed on Review for Upgrade, currently A3(cr)
.... ST Counterparty Risk Assessment,
Placed on Review for Upgrade, currently P-2(cr)
.... ST Counterparty Risk Rating (Foreign
Currency), Placed on Review for Upgrade, currently P-2
.... ST Counterparty Risk Rating (Local Currency),
Placed on Review for Upgrade, currently P-2
.... LT Counterparty Risk Rating (Foreign
Currency), Placed on Review for Upgrade, currently Baa1
.... LT Counterparty Risk Rating (Local Currency),
Placed on Review for Upgrade, currently Baa1
.... LT Issuer Rating, Placed on Review
for Upgrade, currently Baa2, Ratings Under Review from Stable
..Issuer: Deutsche Bank Trust Company Americas
.... LT Counterparty Risk Assessment,
Placed on Review for Upgrade, currently A3(cr)
.... ST Counterparty Risk Assessment,
Placed on Review for Upgrade, currently P-2(cr)
.... ST Counterparty Risk Rating (Foreign
Currency), Placed on Review for Upgrade, currently P-2
.... ST Counterparty Risk Rating (Local Currency),
Placed on Review for Upgrade, currently P-2
.... LT Counterparty Risk Rating (Foreign
Currency), Placed on Review for Upgrade, currently Baa1
.... LTCounterparty Risk Rating (Local Currency),
Placed on Review for Upgrade, currently Baa1
.... LT Issuer Rating, Placed on Review
for Upgrade, currently Baa2, Ratings Under Review from Stable
..Issuer: Deutsche Bank Trust Company Delaware
.... LT Counterparty Risk Assessment,
Placed on Review for Upgrade, currently A3(cr)
.... STCounterparty Risk Assessment,
Placed on Review for Upgrade, currently P-2(cr)
.... ST Counterparty Risk Rating (Foreign
Currency), Placed on Review for Upgrade, currently P-2
.... ST Counterparty Risk Rating (Local Currency),
Placed on Review for Upgrade, currently P-2
.... LT Counterparty Risk Rating (Foreign
Currency), Placed on Review for Upgrade, currently Baa1
.... LT Counterparty Risk Rating (Local Currency),
Placed on Review for Upgrade, currently Baa1
.... LT Issuer Rating, Placed on Review
for Upgrade, currently Baa2, Ratings Under Review from Stable
..Issuer: Deutsche Bank Trust Corporation
.... Issuer Rating, Placed on Review
for Upgrade, currently Baa2, Ratings Under Review from Stable
..Issuer: HSBC Bank USA, N.A.
....Subordinate Bank Note Program (Local Currency),
Placed on Review for Upgrade, currently (P)A1
....Subordinate Regular Bond/Debenture (Local
Currency), Placed on Review for Upgrade, currently A1
..Issuer: HSBC USA Inc.
....Subordinate Shelf (Local Currency),
Placed on Review for Upgrade, currently (P)A3
....Senior Unsecured Shelf (Local Currency),
Placed on Review for Upgrade, currently (P)A2
....Pref. Shelf (Local Currency),
Placed on Review for Upgrade, currently (P)Baa1
....Pref. shelf Non-cumulative
(Local Currency), Placed on Review for Upgrade, currently
(P)Baa2
....Senior Unsecured MTN (Local Currency),
Placed on Review for Upgrade, currently (P)A2
....Senior Unsecured Regular Bond/Debenture
(Local Currency), Placed on Review for Upgrade, currently
A2, Ratings Under Review
..Issuer: Republic New York Corporation
....Subordinate Regular Bond/Debenture (Local
Currency), Placed on Review for Upgrade, currently A3
..Issuer: FirstMerit Bank, N.A.
....Subordinate Regular Bond/Debenture (Local
Currency), Placed on Review for Upgrade, currently Baa1
..Issuer: TCF National Bank
....Subordinate Regular Bond/Debenture (Local
Currency), Placed on Review for Upgrade, currently Baa1
Confirmations:
..Issuer: HSBC Bank USA, N.A.
.... LT Counterparty Risk Assessment,
Confirmed at Aa3(cr)
.... LT Counterparty Risk Rating (Local Currency),
Confirmed at Aa3
.... LT Counterparty Risk Rating (Foreign
Currency), Confirmed at Aa3
.... LT Issuer Rating, Confirmed at
Aa3, Stable from Ratings Under Review
....Senior Unsecured Bank Note Program (Local
Currency), Confirmed at (P)Aa3
....Senior Unsecured Regular Bond/Debenture
(Foreign Currency), Confirmed at Aa3, Stable from Ratings
Under Review
....LT Bank Deposits (Local Currency),
Confirmed at Aa3, Stable from Ratings Under Review
..Issuer: HSBC USA Inc.
.... Commercial Paper, Confirmed at
P-1
Outlook Actions:
..Issuer: JPMorgan Chase & Co.
....Outlook, Changed To Positive(m)
From Stable
..Issuer: JPMorgan Chase Financial Company LLC
....Outlook, Changed To Positive From
Stable
..Issuer: Wells Fargo & Company
....Outlook, Remains Negative
..Issuer: Wells Fargo Finance LLC
....Outlook, Remains Negative
..Issuer: Wells Fargo Canada Corporation
....Outlook, Remains Negative
..Issuer: MUFG Union Bank, N.A.
....Outlook, Remains Stable
..Issuer: KeyBank National Association
....Outlook, Remains Stable
..Issuer: PNC Bank, N.A.
....Outlook, Changed To Stable From
Negative
..Issuer: BBVA USA
....Outlook, Changed To Stable From
Negative
..Issuer: National City Bank
....Outlook, Changed To Stable From
Negative
..Issuer: Fifth Third Bank, National Association
....Outlook, Remains Stable
..Issuer: City National Bank
....Outlook, Remains Stable
..Issuer: Capital One Bank (USA), N.A.
....Outlook, Remains Stable
..Issuer: Capital One, N.A.
....Outlook, Remains Stable
..Issuer: Bank of the West
....Outlook, Remains Stable
..Issuer: Deutsche Bank National Trust Company
....Outlook, Changed To Rating Under
Review From Stable
..Issuer: Deutsche Bank Trust Company Americas
....Outlook, Changed To Rating Under
Review From Stable
..Issuer: Deutsche Bank Trust Company Delaware
....Outlook, Changed To Rating Under
Review From Stable
..Issuer: Deutsche Bank Trust Corporation
....Outlook, Changed To Rating Under
Review From Stable
..Issuer: Discover Bank
....Outlook, Changed To Rating Under
Review From Positive
..Issuer: FirstMerit Bank, N.A.
....Outlook, Changed To Rating Under
Review From No Outlook
..Issuer: Huntington National Bank
....Outlook, Changed To Stable from
Negative
..Issuer: TCF National Bank
....Outlook, Changed To Rating Under
Review From No Outlook
..Issuer: Truist Bank
....Outlook, Remains Stable
METHODOLOGIES
The principal methodology used in these ratings was Banks Methodology
published in July 2021 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1269625.
Alternatively, please see the Rating Methodologies page on www.moodys.com
for a copy of this methodology.
REGULATORY DISCLOSURES
For further specification of Moody's key rating assumptions and
sensitivity analysis, see the sections Methodology Assumptions and
Sensitivity to Assumptions in the disclosure form. Moody's
Rating Symbols and Definitions can be found at: https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_79004.
For ratings issued on a program, series, category/class of
debt or security this announcement provides certain regulatory disclosures
in relation to each rating of a subsequently issued bond or note of the
same series, category/class of debt, security or pursuant
to a program for which the ratings are derived exclusively from existing
ratings in accordance with Moody's rating practices. For ratings
issued on a support provider, this announcement provides certain
regulatory disclosures in relation to the credit rating action on the
support provider and in relation to each particular credit rating action
for securities that derive their credit ratings from the support provider's
credit rating. For provisional ratings, this announcement
provides certain regulatory disclosures in relation to the provisional
rating assigned, and in relation to a definitive rating that may
be assigned subsequent to the final issuance of the debt, in each
case where the transaction structure and terms have not changed prior
to the assignment of the definitive rating in a manner that would have
affected the rating. For further information please see the ratings
tab on the issuer/entity page for the respective issuer on www.moodys.com.
For any affected securities or rated entities receiving direct credit
support from the primary entity(ies) of this credit rating action,
and whose ratings may change as a result of this credit rating action,
the associated regulatory disclosures will be those of the guarantor entity.
Exceptions to this approach exist for the following disclosures,
if applicable to jurisdiction: Ancillary Services, Disclosure
to rated entity, Disclosure from rated entity.
The ratings have been disclosed to the rated entity or its designated
agent(s) and issued with no amendment resulting from that disclosure.
These ratings are solicited. Please refer to Moody's Policy
for Designating and Assigning Unsolicited Credit Ratings available on
its website www.moodys.com.
Regulatory disclosures contained in this press release apply to the credit
rating and, if applicable, the related rating outlook or rating
review.
Moody's general principles for assessing environmental, social
and governance (ESG) risks in our credit analysis can be found at http://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1288435.
The Global Scale Credit Rating on this Credit Rating Announcement was
issued by one of Moody's affiliates outside the EU and is endorsed
by Moody's Deutschland GmbH, An der Welle 5, Frankfurt
am Main 60322, Germany, in accordance with Art.4 paragraph
3 of the Regulation (EC) No 1060/2009 on Credit Rating Agencies.
Further information on the EU endorsement status and on the Moody's
office that issued the credit rating is available on www.moodys.com.
The Global Scale Credit Rating on this Credit Rating Announcement was
issued by one of Moody's affiliates outside the UK and is endorsed
by Moody's Investors Service Limited, One Canada Square,
Canary Wharf, London E14 5FA under the law applicable to credit
rating agencies in the UK. Further information on the UK endorsement
status and on the Moody's office that issued the credit rating is
available on www.moodys.com.
The below contact information is provided for information purposes only.
Please see the ratings tab of the issuer page at www.moodys.com,
for each of the ratings covered, Moody's disclosures on the
lead rating analyst and the Moody's legal entity that has issued
the ratings.
The person who approved Bank of the West, BBVA USA , Capital
One Bank (USA), N.A., Capital One, N.A.,
City National Bank, Deutsche Bank National Trust Company,
Deutsche Bank Trust Company Americas, Deutsche Bank Trust Company
Delaware, Deutsche Bank Trust Corporation, Discover Bank,
Fifth Third Bank, National Association, FirstMerit Bank,
N.A., HSBC Bank USA, N.A.,
HSBC USA Inc., Huntington National Bank, KeyBank National
Association, MB Financial Bank, N.A.,
MUFG Union Bank, N.A., National City Bank,
PNC Bank, N.A., Republic New York Corporation,
TCF National Bank, Truist Bank, Wells Fargo & Company,
Wells Fargo Canada Corporation, Wells Fargo Finance LLC credit ratings
is Andrea Usai, Associate Managing Director, Financial Institutions
Group, JOURNALISTS: 1 212 553 0376, Client Service:
1 212 553 1653.. The person who approved JPMorgan Chase
& Co., Bear Stearns Companies LLC. (The),
J.P. Morgan & Co. Incorporated, JPMorgan
Chase Financial Company LLC credit ratings is Donald Robertson,
Associate Managing Director, Financial Institutions Group,
JOURNALISTS: 1 212 553 0376, Client Service: 1 212 553
1653.
The relevant office for each credit rating is identified in "Debt/deal
box" on the Ratings tab in the Debt/Deal List section of each issuer/entity
page of the website.
Please see www.moodys.com for any updates on changes to
the lead rating analyst and to the Moody's legal entity that has issued
the rating.
Please see the ratings tab on the issuer/entity page on www.moodys.com
for additional regulatory disclosures for each credit rating.
Peter E. Nerby
Senior Vice President
Financial Institutions Group
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 1 212 553 0376
Client Service: 1 212 553 1653
Andrea Usai
Associate Managing Director
Financial Institutions Group
JOURNALISTS: 1 212 553 0376
Client Service: 1 212 553 1653
Releasing Office:
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 1 212 553 0376
Client Service: 1 212 553 1653
