S&P cuts Riggs National's securities to C, watch to negative

Standard & Poor's said it lowered its rating on Riggs National Corp.'s trust-preferred securities to C from CCC-. At the same time, the CreditWatch developing on the trust-preferred securities has been revised to CreditWatch negative.

All other ratings on Riggs and its banking subsidiary, Riggs Bank NA, were affirmed and remain on CreditWatch developing.

S&P affirmed Riggs' B- counterparty credit and CCC subordinated debt ratings, Riggs Bank's B+ counterparty credit and B+ CD ratings and Riggs Capital, Riggs Capital II and Riggs Capital III's CCC- rated preferred stock was cut to C.

S&P said The Federal Reserve announced it would not approve Riggs' request to make payments on their trust-preferred securities on Dec. 31. The CreditWatch negative on the trust-preferred securities anticipates payment deferral on that date.

Meanwhile, S&P said the CreditWatch developing on Riggs hinges on the outcome of the proposed merger with PNC Financial Services Group.

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