S&P may up Wilmington Trust

Standard & Poor's said it placed the ratings of Wilmington Trust Corp. and its main bank subsidiary, Wilmington Trust Co., DE, on CreditWatch with positive implications.

The positive watch follows news that it will be acquired by higher-rated M&T Bank Corp., which has A and A-2 ratings with negative outlook.

In this $351 million stock transaction, M&T Bank will assume all of Wilmington Trust's assets and liabilities.

Wilmington sought an acquisition in conjunction with recognizing a further sharp increase in non-performing assets, mainly in its construction loan portfolio, S&P said.

This drove a large third-quarter loss and a significant erosion of its tangible common equity, the agency said.

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