Moody's boosts Sovereign Bancorp senior debt

Moody's Investors Service said it upgraded the debt and deposit ratings of Sovereign Bancorp, Inc. (senior to Baa1 from Baa2) and its subsidiaries, including its lead thrift, Sovereign Bank (long-term deposits to A3 from Baa1).

In the same action, Moody's said it confirmed Sovereign Bank's financial strength rating of C-.

Following the ratings action, the outlook is negative.

This rating action concludes the review that began in October, the agency said, adding that Moody's rating action follows Banco Santander Central Hispano's (senior Aa1) purchase of the remaining 75.66% of Sovereign that it did not previously own, and its planned infusion of $1.8 billion, which is expected to be tier 1 qualifying.

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