Moody’s affirms M&I’s ratings, turns outlook to negative
Moody’s Investors Service affirmed the ratings but placed a negative outlook on Marshall & Ilsley LLC (M&I) and the lead subsidiary, M&I Marshall & Ilsley Bank. The holding company’s long-term senior debt is rated A1 and the bank is rated B for financial strength and Aa3 for deposits.
The negative outlook reflects M&I’s large commercial real estate (CRE) exposures, a risk that Moody’s has long cited as a credit weakness for the company.
Offsetting this challenge is the company’s very strong capital position. The negative outlook captures the potential for increased leverage at a time when property markets continue to be volatile. — www.theasianbanker.com (January 29 2008)–