January 2, 2008
Rating Agency Upgrades Flagship Parent
By Matthew L. Brown
As a result of the "prudent" acquisition of Chittenden Corp. and its subsidiaries, including Worcester's Flagship Bank & Trust Co., Fitch Ratings has upgraded the long- and short-term Issuer Default Ratings for People's United Financial Inc. and its subsidiary, People's United Bank.
Fitch upgraded the ratings for Connecticut-based People's and People's United to BBB+ and F1, respectively. The ratings of the former Chittenden Corp.'s subsidiaries, which were placed on "rating watch negative" in June have been removed from that list and have been aligned with the ratings of People's United. The ratings of Chittenden Corp. itself have also been removed from rating watch negative and withdrawn.
Fitch believes the $1.9 billion acquisition of Chittenden is favorable for People's. Fitch said the successful integration of Chittenden may indicate that People's expects to grow significantly through more acquisitions, and said People's has the money to consider acquisitions similar in size to the Chittenden buy.
Fitch upgraded the ratings for Connecticut-based People's and People's United to BBB+ and F1, respectively. The ratings of the former Chittenden Corp.'s subsidiaries, which were placed on "rating watch negative" in June have been removed from that list and have been aligned with the ratings of People's United. The ratings of Chittenden Corp. itself have also been removed from rating watch negative and withdrawn.
Fitch believes the $1.9 billion acquisition of Chittenden is favorable for People's. Fitch said the successful integration of Chittenden may indicate that People's expects to grow significantly through more acquisitions, and said People's has the money to consider acquisitions similar in size to the Chittenden buy.
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