S&P: National City unchanged

Standard & Poor's said that National City Corp.'s (A/negative/A-1) announcement that it will add $7 billion to its capital structure and reduce its common dividend to $0.01 per share will have no ratings or outlook impact.

The agency said that it views the recapitalization favorably as the incremental capital significantly improves the company's ability to navigate through the current challenging environment, specifically in the housing and mortgage markets where National City maintains still-sizable exposures.

The recapitalization, which initially will be in the form of contingently convertible perpetual noncumulative preferred stock and warrants, will strengthen the company's tier 1 risk-based capital ratio to 11.75% on a pro-forma basis from 6.65% at March 31, S&P added.

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