S&P: KeyCorp, KeyBank to stable

S&P said it affirmed the BBB+/A-2 issuer credit ratings on KeyCorp and the A-/A-2 issuer credit ratings on KeyBank NA and revised the outlooks to stable from negative.

"The outlook revision reflects our view that KeyCorp has successfully executed its acquisition of First Niagara and that the addition of First Niagara's businesses will enhance KeyCorp's overall banking franchise," S&P credit analyst Erik Oja said in a news release.

The acquisition significantly improved the institution's deposit density in key upstate New York markets, as well as broadened its residential mortgage banking capabilities.

In addition, the agency expects management will meet its targets for expense savings, which should help improve KeyCorp's profitability, which has historically lagged peers'.

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