Fitch affirms PNC, Riggs up to watch positive

Fitch Ratings affirmed all ratings of PNC Financial Services Group Inc. and its affiliates and removed ratings of Riggs National Corp. and its affiliates from Rating Watch Negative and has placed them on Rating Watch Positive following PNC's announcement that it has reached a definitive agreement to purchase Riggs for about $779 million in stock and cash.

Fitch said the transaction fits well into PNC's retail banking and asset management business model. The acquisition will enable PNC to expand into the high-growth metropolitan Washington D.C. market.

The outlook is stable.

Fitch affirmed PNC Financial's long-term senior rating at A, its long-term subordinated at A-, its preferred stock at A-, its short-term at F1, individual at B/C, support at 2.

Fitch placed on watch positive Riggs National Corp.'s BB- long-term senior rating, B+ subordinated debt, B short-term debt, D individual debt and 5 support, Riggs Bank National's long-term deposits at BB+, long-term senior at BB, short-term debt at B, short-term deposits at B, individual at D and support at 5 and Riggs Capital II's preferred stock at B.

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