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BULLETIN: Bank Of America Corp. Ratings Unaffected By Lawsuit Settlement Agreement Mar 05
Standard & Poors, March 2005
Abstract
NEW YORK (Standard & Poor's) March 3, 2005--Standard & Poor's Ratings Services said today that Bank of America Corp.'s (BoA; AA-/Stable/A-1+) agreement to settle class action lawsuits related to WorldCom does not have an impact on its ratings or stable outlook on the company. The total settlement is $460.5 million and will not affect first-quarter 2005 results because the bank has insurance and reserves to cover this amount. We believe BoA's payment was much less than that of Citigroup, because BoA's investment banking business with WorldCom was significantly smaller and did not have ancillary considerations, such as analysts' conflict of interest. BoA's only role was as a member of the underwriting syndicate of two WorldCom debt issues. This WorldCom settlement...
Companies mentioned in this report are: Bank of America Corp.
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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