DBRS confirms M&T Bank

DBRS said it confirmed M&T Bank Corp.'s issuer and senior debt rating of A (low).

The trend remains negative.

The action follows the company's plans to acquire Wilmington Trust Corp. in a stock deal valued at $351 million plus the assumption of $330 million in TARP preferred stock, according to the agency.

DBRS said the acquisition was consistent with M&T's opportunistic strategy of buying banks at a rational price with compatible corporate cultures.

The confirmation reflects M&T's strong Northeast and mid-Atlantic commercial and consumer banking franchise, which is underpinned by sound asset quality, a solid funding profile and sound recurrent earnings generation, the agency said.

Ratings also reflect the large CRE concentration particularly within the New York City market, sizable and somewhat riskier private label mortgage-backed securities portfolio, acceptable liquidity position and moderate capitalization, the agency noted.

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