Huntington National Bank 2005 Annual Report Download - page 70

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MANAGEMENT’S DISCUSSION AND ANALYSIS HUNTINGTON BANCSHARES INCORPORATED
As a result of the then-pending formal SEC investigation and banking regulatory supervisory agreements announced on
November 3, 2004, the following rating agency actions were taken (1) Moody’s reaffirmed their Negative outlook and placed all
the ratings on review for possible downgrade, (2) Standard and Poor’s lowered their outlook from Stable to Negative, and
(3) Fitch lowered their outlook from Stable to Negative. As a precautionary measure, we increased the volume of long-term
wholesale borrowings, while reducing overnight Federal Funds borrowings. The cost of short-term borrowings was not materially
affected by these actions, although at least one investor reduced exposure limits.
On February 8, 2005, Moody’s announced the following rating actions:
From To
Huntington Bancshares Incorporated
Senior Unsecured Notes A2 A3
Subordinated Notes A3 Baa1
Short Term P-1 P-2
Outlook Negative Stable
The Huntington National Bank
Senior Unsecured Notes A1 A2
Subordinated Notes A2 A3
Short Term (reaffirmed ) P-1 P-1
Outlook Negative Stable
On April 6, 2005, Standard and Poor’s announced the following rating actions:
From To
Huntington Bancshares Incorporated
Senior Unsecured Notes A– BBB+
Subordinated Notes BBB+ BBB
Short Term (reaffirmed ) A-2 A-2
Outlook Negative Stable
The Huntington National Bank
Senior Unsecured Notes A A–
Subordinated Notes A– BBB+
Short Term A-1 A-2
Outlook Negative Stable
These two rating agency actions had no adverse impact on rating triggers inherent in financial markets or our ability to raise and
maintain core deposits or access the capital markets for funding.
On October 3, 2005, Fitch Ratings affirmed their current ratings and changed the outlook to Stable from Negative. Credit ratings
as of December 31, 2005 for the parent company and the Bank were:
Table 26 — Credit Ratings
December 31, 2005
Senior Unsecured Subordinated
Notes Notes Short-Term Outlook
Huntington Bancshares Incorporated
Moody’s Investor Service A3 Baal P-2 Stable
Standard and Poor’s BBB+ BBB A-2 Stable
Fitch Ratings A A– F1 Stable
The Huntington National Bank
Moody’s Investor Service A2 A3 P-1 Stable
Standard and Poor’s A– BBB+ A-2 Stable
Fitch Ratings A A– F1 Stable
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