Moody's: People's United view stable

Moody's Investors Service said it affirmed People's United Financial, Inc.'s long-term issuer rating at A3 and short-term term issuer ratings at Prime-2 and changed the outlook to stable from positive.

Moody's said the change was driven by the company's comparatively weak core profitability, a deteriorating economic environment and the possibility that People's would use its large capital surplus to make another acquisition in such an environment.

These considerations outweighed the enhancement of the franchise through the Chittenden acquisition and the maintenance of superior asset quality, liquidity and capital adequacy metrics relative to peers, Moody's added.

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