Fitch cuts Riggs National, units

Fitch Ratings said it lowered the ratings for Riggs National Corp. and its rated subsidiaries. The long-term debt ratings for Riggs and Riggs Bank NA were lowered to B from BB- and to B+ from BB, respectively.

Fitch also revised the Rating Watch status to evolving from positive, where the ratings were placed on July 19 when it was announced that Riggs had entered into a definitive agreement to sell to PNC Financial Services Group Inc.

Fitch said the ratings downgrade reflects the increasing potential financial impact that could result from the growing number of government investigations and lawsuits related to Riggs compliance with the Bank Secrecy Act and associated rules and regulations pertaining to money laundering.

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