S&P affirms PNC Financial

Standard & Poor's said that it affirmed the A/A-1 counterparty credit rating on PNC Financial Services Group.

The outlook is stable.

The affirmation is based on PNC's announced acquisition of RBC Bank (USA) (BBB/positive watch/A-2), for about $3.45 billion, the agency said. PNC can finance up to $1 billion of the purchase with common stock and will fund the balance of the purchase with cash on hand, debt issuance and a preferred stock offering.

The transaction complements PNC's banking footprint on the east coast of the United States, the agency added. The scale of PNC's operation should provide for cost efficiencies and the expanded footprint should provide new cross-selling opportunities and deposit growth.

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