DBRS confirms People's United

DBRS said it confirmed People's United Financial, Inc.'s A (low) issuer and senior debt ratings, BBB (high) subordinated debt rating and R-1 (low) short-term instruments rating.

The agency also affirmed People's Untied Bank's A deposits and senior debt ratings, A (low) subordinated debt rating and R-1 (low) short-term instruments rating.

The trends are stable.

The ratings action follows the company's reporting of fourth-quarter financial results and its announcement that it plans to acquire Danvers in a transaction valued at about $493 million.

The agency said the confirmation is based on its opinion that Danvers makes sense strategically, has a clean loan portfolio and is immediately accretive to earnings.

Nonetheless, this marks the fifth acquisition that People's has announced/completed since November 2009. Consequently, DBRS remains concerned with the company's ability to successfully integrate and manage all acquisitions.

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