Moody's affirms KeyCorp

Moody's Investors Service said it affirmed the A2 senior debt ratings on KeyCorp.

The outlook is stable.

According to Moody's, the affirmation follows Key's announced after-tax charge related to its leasing litigation with the Internal Revenue Service.

Key said it plans a capital raise of $1.5 billion and a 50% reduction in its common stock dividend, which would offset the impact on Key's capital from both the leasing-related charge and an expected jump in loan loss provisions in the second quarter, the agency noted.

In addition to its robust capital position, ratings continue to be supported by a healthy parent company liquidity profile and good geographic and business line diversity, Moody's said.

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