News Column

Fitch Rates People's United Bank's Subordinated Note Issuance 'BBB+'

June 24, 2014



NEW YORK--(BUSINESS WIRE)-- Fitch Ratings assigns a 'BBB+' rating to People's United Bank's (People's) $400 million subordinated note offering. The subordinated note matures in 2024 and has a coupon set at 4.00%. The proceeds of the note issuance will be used for general corporate purposes and will count as Tier 2 regulatory capital.

KEY RATING DRIVERS - SUBORDINATED NOTES

The subordinated notes represent junior obligations of People's, and therefore, the ratings of the subordinated notes are notched once from the bank's viability rating (VR) of 'a-' to reflect potential loss severity.

RATING SENSITIVITIES - SUBORDINATED NOTES

Given that the subordinated notes are notched from People's VR, any changes to the bank's VR will impact the rating of the subordinated notes.

People's VR was last affirmed on Feb. 5, 2014, at which point the Rating Outlook was revised to Negative reflecting the bank's weak earnings and increasing liquidity risk profile. People's VR is sensitive to core earnings levels in a rising rate environment. Should earnings levels continue to rank in the bottom quartile in a rising rate environment, a ratings downgrade is possible.

Additional information is available at 'www.fitchratings.com.'

Applicable Criteria and Related Research:

--'Global Financial Institutions Rating Criteria' (Jan. 31, 2014);

--'Assessing and Rating Bank Subordinated and Hybrid Securities' (Jan. 31, 2014);

--'U.S. Bank HoldCos & OpCos: Evolving Risk Profiles' (Mar. 27, 2014);

--'Fitch Revises People's United's Outlook to Negative After Peer Review; Affirms Ratings at 'A-/F1' (Feb. 5, 2014) .

Applicable Criteria and Related Research:

Global Financial Institutions Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=732397

Assessing and Rating Bank Subordinated and Hybrid Securities Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=732137

U.S. Bank HoldCos & OpCos: Evolving Risk Profiles

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=742096

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=836296

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.



Fitch Ratings

Primary Analyst

Jaymin Berg, CPA, +1 212-908-0368

Director

Fitch Ratings, Inc.

33 Whitehall Street

New York, NY 10004

or

Secondary Analyst

Ryan Doyle, +1 212-908-9162

Director

or

Committee Chairperson

Nathan Flanders, +1 212-908-0827

Managing Director

or

Media Relations, New York

Brian Bertsch, +1 212-908-0549

brian.bertsch@fitchratings.com


Source: Fitch Ratings


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