CHICAGO, July 16 (UPI) -- Fitch Ratings of Chicago Friday affirmed all the ratings of PNC Financial Services Group Inc. and its affiliates.
At the same time, Fitch removed the ratings of Riggs National Corp. and its affiliates from its rating watch negative and placed them on rating watch positive.
The actions follow PNC's announcement it reached a definitive agreement to purchase Riggs for approximately $779 million in stock and cash.
Fitch said the ratings of Riggs and its affiliates will likely be aligned with PNC's ratings when the transaction is consummated.
The acquisition includes both bank and holding company assets, and is expected to close in early 2005 after regulatory and shareholder approvals have been received.
Fitch said, "The transaction fits well into PNC's retail banking and asset management business model. The acquisition will enable PNC to expand into the high-growth metropolitan Washington, D.C., market."
Fitch said it believes that Riggs's deposit franchise is intact and has not been seriously damaged by the company's recent regulatory problems.
