Fitch ups Webster

Fitch Ratings said it upgraded Webster Financial Corp.'s long-term issuer default rating to BBB from BBB-, senior unsecured debt rating to BBB from BBB-, preferred stock to BB+ from BB and short-term issuer default rating to F2 from F3.

Its subsidiary, Webster Bank, NA's long-term issuer default rating was raised to BBB from BBB-, long-term deposits rating to BBB+ from BBB, subordinated debt rating to BBB- from BB+ and short-term issuer default rating to F2 from F3. Its short-term deposits rating was affirmed at F2.

Webster Capital Trust IV's preferred stock rating was upgraded to BB+ from BB and Webster Preferred Capital Corp.'s preferred stock was raised to BB+ from BB.

The outlook is stable.

The upgrade reflects the prudent measures the company has taken to refine its balance sheet and enhance capital levels, Fitch said.

Even following the partial TARP repayment, the company's regulatory capital levels remain strong and provide more than sufficient coverage to absorb potential credit costs, the agency said.

The company's robust reserve levels also serve as a positive ratings driver, Fitch said.

Revenue streams have remained steady while credit costs on a comparative basis have declined, allowing the company to return to profitability, the agency said.

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