S&P cuts Wilmington Trust

Standard & Poor's said it lowered the long-term counterparty credit rating on Wilmington Trust Corp. to BBB+ from A- and on Wilmington's main bank subsidiary by one notch to A-/A-2 from A/A-1.

The outlook is negative.

"The downgrade follows the company's announcement last week that it estimates it will take a relatively large $67 million loan-loss provision in the fourth quarter, reflecting its more cautious stance because of increasingly negative economic conditions in its mid-Atlantic market," S&P analyst Barbara Duberstein said in a statement.

According to the agency, the downgrade reflects the likelihood that Wilmington's nonperforming assets and net charge-offs in 2009 will be higher than anticipated because of intensifying recessionary pressures.

Wilmington's exceptionally good revenue diversification and earnings cushion from its well-regarded, long-established fee-based businesses in the corporate trust and wealth-management areas support the rating, the agency said.

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