Fitch to rate Wintrust preferreds B+

Fitch Ratings said it expects to assign a B+ rating to Wintrust Financial Corp.'s $125 million series D non-cumulative perpetual preferred stock issuance.

Proceeds will be used for general corporate purposes, which may include, investments at the holding company level, providing capital to support growth, acquisitions or other business combinations, including FDIC-assisted acquisitions and reducing or refinancing existing debt.

The hybrid instrument is expected to be rated five notches lower than Wintrust’s viability rating of bbb in accordance with Fitch's “Global Bank Rating Criteria” dated March 20. The rating includes two notches for loss severity given these securities' deep subordination in the capital structure and three notches for non-performance given that the coupon of the securities is non-cumulative and fully discretionary.

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