S&P: Ratings Lowered On Two LOC-Supported Issues Related To Huntington National Bank
Today's rating actions reflect Huntington Bancshares Inc.'s Aug. 17, 2016, acquisition of FirstMerit Bank N. A. They also reflect the subsequent withdrawal of our long - and short-term components of our issuer credit rating on FirstMerit Bank N. A.
The long-term components of our ratings on the bonds are based on our long-term issuer credit rating on Huntington National Bank ('BBB+'), the LOC provider for both issues. Following the acquisition of FirstMerit Bank N. A., Huntington National Bank N. A., an operating subsidiary of Huntington Bancshares Inc., will now provide support in lieu of FirstMerit Bank N. A. The long-term components of our ratings address the likelihood that bondholders will receive interest and principal payments when due if they do not exercise the put option. We are withdrawing the short-term component of our ratings because Huntington National Bank does not carry a short-term rating.
In view of the bonds' structures, changes to our ratings on the bonds can result from, among other things, changes to our ratings on the LOC provider, the expiration or termination of the LOCs, or amendments to the transactions' terms.