S&P could lower Valley National

S&P said it placed the ratings on Valley National Bancorp, including its BBB+ long-term issuer credit rating, BBB subordinated debt rating and BB+ preferred rating, as well as the A- rating on the wholly owned subsidiary Valley National Bank, on CreditWatch with negative implications.

At the same time, the agency affirmed the A-2 short-term rating on Valley National Bank.

S&P said the CreditWatch placement follows Valley's announcement that it entered into an agreement to acquire USAmeriBancorp Inc., a $4.4 billion bank holding company headquartered in Clearwater, Fla., in a stock transaction valued at about $816 million.

The company expects the acquisition, which would be the largest in Valley's history, to close in the first quarter of 2018, subject to customary closing conditions, including regulatory and shareholder approvals.

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