Fitch Ratings has affirmed its long- and short-term default ratings for People’s United Financial Inc. at A- and F1, respectively. At the same time, Fitch has downgraded the individual rating to B/C from B, The Associated Press reports.
The agency is maintaining its rating outlook for People’s United as stable.
Fitch said the affirmation of the default ratings and stable outlook mainly reflect the bank holding company’s continued solid performance on loans, a conservatively funded balance sheet and capital levels that are stronger than most in the banking industry.
On the other hand, People’s United’s lagging earnings performance compared with similar banks was a factor in the downgrade of the individual rating, Fitch said.
People’s United, the parent of People’s United Bank, is based in Bridgeport, Conn.
Fitch said it expects the company’s capital levels will continue to gradually decline over the next several quarters. A continuing conservative approach to acquisitions and buying back company shares also is anticipated.
