S&P: KeyCorp outlook negative

Standard & Poor's said it revised the outlook on KeyCorp and its subsidiaries to negative from stable, and affirmed the A-/A-2 counterparty credit rating.

The action follows the company's 8-K filing announcing an adverse legal ruling associated with its leasing business, according to the agency.

Although the total exposure is yet to be determined, S&P said the after-tax interest on accrued deferred income taxes of $1.7 billion could reach as high as $435 million, according to the company's March 31 10-Q filing.

KeyCorp also said in the filing that litigation could change management's assumptions pertaining to the expected timing of cash flows related to income taxes for some or all of its leveraged lease transactions, according to the agency.

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