CHICAGO--(BUSINESS WIRE)--Fitch Ratings has assigned a rating of `A-' to junior subordinated debt issued by State Street Corporation (STT). STT is issuing $500.1 million of junior subordinated debt maturing March 15, 2018 with a coupon of 4.956%. This issuance represents the remarketing of existing junior subordinated debt originally issued by STT to State Street Capital Trust III (the Trust). The junior subordinated debt will be accorded Tier II Capital treatment at the parent level.
Proceeds will be used to provide the Trust with funds necessary to purchase the shares of non cumulative perpetual preferred stock to be issued by STT on March 15, 2011. Both the remarketing and the issuance of preferred stock were required by the terms of the original trust.
The securities will be deeply subordinated, ranking junior to all senior and subordinated indebtedness of STT as well as junior subordinated debt issued in connection with State Street Capital Trust I. The securities will rank pari passu with junior subordinated debt issued in connection with State Street Capital Trust IV (an enhanced trust preferred vehicle). Due to the relatively short maturity of the securities in combination with the deferral feature, these securities do not qualify for equity credit under Fitch's Hybrid Capital criteria.
Fitch has assigned the following rating:
State Street Corporation
--Junior Subordinated Debt `A-'.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
--Global Financial Institutions Rating Criteria, Aug. 13, 2010;
--Bank Holding Companies, Dec. 31, 2009;
--Rating Hybrid Securities, Dec. 29, 2009;
--Equity Credit for Hybrid & Other Capital Securities - Amended, Dec. 29, 2009.
Applicable Criteria and Related Research:
Global Financial Institutions Rating Criteria
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=547685
Bank Holding Companies
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=493324
Rating Hybrid Securities
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=493086
Equity Credit for Hybrids & Other Capital Securities - Amended
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=493112
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