Fitch cuts Capital One hybrids

Fitch Ratings said it has downgraded Capital One Financial Corp.'s existing hybrid equity ratings to BBB from BBB+ to reflect a widening of the notching from the company's current A- issuer default rating.

As of March 31, the company's hybrid securities included $3.55 billion of preferred stock issued under the Capital Purchase Program and about $1.6 billion of hybrid equity.

Given Capital One's exposure to deteriorating consumer credit and the existence of senior subordinated debt, Fitch said it felt it was prudent to widen the notching on its hybrid capital instruments.

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