S&P affirms Riggs

Standard & Poor's affirmed its A-/stable/-- counterparty credit ratings on PNC Financial Services Group following its definitive agreement to acquire Riggs National Corp. The ratings on Riggs are placed on CreditWatch with positive implications.

By many accounts, Riggs is a troubled institution, yet the financial impact on the $70 billion PNC should be minimal, S&P said.

"Strategically, the deal gives PNC an entry into the District of Columbia and provides a platform for branch expansion into neighboring counties in Virginia and Maryland. Unfortunately, PNC is late in the game, as competitors have already covered the more attractive markets surrounding the city," said S&P credit analyst John K. Bartko.

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