Fitch affirms M&T, puts Provident on positive watch

Fitch Ratings has affirmed all ratings for M&T Bank Corp. with a stable outlook and placed Provident Bankshares, Corp.'s ratings on Rating Watch positive follow M&T's announcement of a definitive agreement to acquire Provident in an all-stock transaction valued at $401 million.

M&T has A- long-term issuer default and senior debt ratings, a BBB+ subordinated debt rating, an F1 short-term issuer default rating, a B individual rating and a 3 support rating. In addition, the senior long-term debt of Manufacturers & Traders Trust Co. is rated A-, and the subordinated debt of Manufacturers & Traders and the preferred stock of M&T Capital Trust I-VI is rated BBB+.

Provident has a BBB long-term issuer default rating, BBB- preferred stock rating, F2 short-term issuer default rating, B/C individual rating and 5 support rating. Provident Bank of Maryland's subordinated debt is rated BBB-, and Provident (MD) Capital Trust I's preferreds are also rated BBB-.

The agency said Provident represents a relatively small acquisition for M&T, an experienced acquirer, but will materially strengthen M&T's base in the Mid-Atlantic.

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