S&P: Wilmington Trust view negative

Standard & Poor's said it revised the outlook on Wilmington Trust Corp. to negative from stable and affirmed long-term counterparty credit ratings at A- and short-term rating at A-2.

This action was the result of a broader review of U.S. regional bank institutions.

The negative outlook reflects concerns about Wilmington Trust's high exposure to residential construction lending in the current uncertain housing market and a decline in the company's regulatory capital levels, which are slightly below those of its peers.

S&P said the affirmation considers the company's adequate asset quality performance to date and the relative economic resilience of its main market, Delaware.

A significant supporting factor for the rating is Wilmington Trust's exceptionally good revenue diversification and earnings cushion from its fee-based businesses, the agency added.

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