S&P: Webster unchanged

Standard & Poor's said its ratings and outlook on Webster Financial Corp. (BBB/stable) are not affected by the company's announcement of planned substantial charges that will affect fourth-quarter results.

According to S&P, Webster expects to incur $62.4 million in pretax charges in the fourth quarter, including a $40 million pretax credit loss provision related to two indirect portfolios originated outside its New England footprint: $83 million in residential construction loans and $341 million in home equity loans.

Both these portfolios are now part of discontinued businesses, the agency said, adding that Webster previously identified them as performing much worse than the rest of its loan portfolio.

The rating assumes modest additional provisions related to these liquidating portfolios and continued good asset quality in Webster's remaining, largely lending businesses, the agency noted.

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