No rating impact from Barclays-ABN Amro merger talks, says Fitch, S&P UPDATE |
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Wed, 21 Mar 2007 09:21
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LONDON (AFX) - Standard & Poor's Ratings Services and Fitch Ratings said there is no immediate impact on their ratings and outlook on Barclays Bank, a unit of Barclays PLC, and ABN Amro Bank, the banking arm of ABN Amro Holding NV on the news of potential merger talks.Both the ratings agencies cited scanty details about the ongoing talks. Fitch said it would need more clarity about the transaction terms, including the impact on capital adequacy, and on the corporate structure arising from the merger.The wholesale and investment banking and asset management businesses of the two banks offer most scope for revenue and cost synergies, Fitch added.S&P said the talks are in a preliminary stage of the talks with 'a variety of outcomes possible.'S&P said while determining the ratings it will focus on the proposed financial structure, integration program and targeted synergies arising from the merger in addition to plans for disposals.If the merger comes through and financial structure does not lead to increased leverage and a sound corporate structure is in place the rating on Barclays' is likely to be affirmed, S&P said. The ratings could be negatively impacted if the leverage rises significantly, it added.Fitch said it holds Barclays' issuer default 'AA+' rating with stable outlook and ABN Amro's 'AA-' rating with stable outlook.S&P said it will keep Barclays' issuer default 'AA+' and ABN Amro's 'AA-' rating with unchanged stable outlook.newsdesk@afxnews.comssa/ash/akuCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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Barclays, ABN Amro ratings unchanged on potential merger talks - Fitch 