Moody's may raise Advanta

Moody's Investors Service said it placed all ratings of Advanta Corp. on review for possible upgrade. Ratings placed on review for possible upgrade include Advanta Corp.'s senior unsecured rating of B2 and subordinated rating of Caa1 as well as Advanta Capital I's trust preferred stock rating of Caa1.

The ratings review is due to the removal of uncertainty around the major litigation issues with Chase Mortgage Corp. coupled with improving operating metrics at Advanta's business credit card segment.

Earlier this month Advanta reported that the U.S. District Court entered its judgment on the complaint filed in 2001 by Chase Mortgage Corp. The court rejected Chase's claims of $88 million plus interest but affirmed one contract claim worth $17.5 million plus interest. A second legal matter between the parties was settled this month as well, in which Chase will pay $8.75 million to Advanta. As part of the settlement, all of the claims and counterclaims related to this second legal matter will be dismissed.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.