Fitch upgrades AmeriServ

Fitch Ratings said it upgraded AmeriServ Financial, Inc.'s long-term issuer default rating to BB- from B+, AmeriServ Capital Trust I's trust preferreds to B from B- and AmeriServ Financial Bank's long-term issuer default rating to BB from BB-, long-term deposits to BB+ from BB and individual rating to C/D from D.

The outlook for AmeriServ is positive, and the outlook for AmeriServ Financial Bank is stable.

The agency said the upgrade is reflective of AmeriServ's improved liquidity and positive earnings trend, which supports the company's ability to service the trust preferred debt outstanding, and Fitch's belief that the likelihood of a deferral on the trust preferred dividend in the near to medium term has lessened.

Additionally, the removal in February 2006 of the Memorandum of Understanding entered into with regulators allows management to focus more on the execution of its strategic goals to grow core earnings and improve financial performance, Fitch said.

The positive outlook for AmeriServ reflects the agency's view that given continued earnings momentum, the ability to upstream dividends from the bank without regulatory approval would further improve the parent company's ability to meet its financial obligations and AmeriServ's overall financial profile.

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