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Bulletin: Sovereign Bancorp Rating Unaffected By U.S. Government Control Of Fannie And Freddie Sep 08
Standard & Poors, Sep 2008
Abstract
NEW YORK (Standard & Poor's) Sept. 8, 2008--Standard & Poor's Ratings Services said today there are no ratings implications for Sovereign Bancorp (BBB/Stable/--) as a result of the U.S. Treasury's announcement that it will take control of Fannie Mae and Freddie Mac. At the end of the second quarter, Sovereign held approximately $639 million of these companies' preferred securities. Under the Treasury's plan, the dividends associated with these securities will cease, resulting in a decline in the stock's value, presumably to nominal levels. In a worst-case scenario, a decline in Sovereign's $639 million investments would represent a setback in the company's efforts to strengthen capital levels, but would not reduce levels outside the range of similarly rated institutions. In addition,...
Companies mentioned in this report are: Santander Holdings U.S.A Inc.,Fannie Mae,Freddie Mac
Action: Bulletin
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research type: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.
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