S&P: Credit Ratings on Comerica Unaffected by Q3 Results

October 24 00:00 2011

NEW YORK, October 24 (RainbowNewsLine.com) – Analysts at S&P’s Rating Services reiterate their (A-/Stable/A-2) rating and outlook on Comerica following Q3 results which were in line with the expectations.

Comerica reported a net income of $98 million for 3Q2011, as compared to $59 million a year ago, supported by lower loan loss provisions. Comerica’s credit quality continues to improve due to decreasing non-performing & watch list loans,  net charge-offs, and inflows of new non-performing loans. The company’s outstanding loans and net interest margins rose largely due to the Sterling acquisition; and the trend is expected to be better in 2012 given the modest economic growth assumptions, the analysts say. The regulatory capital ratios were stable while common equity ratio eased up to 10.43%, the analysts add.

S&P’s rating reflects positive outlook towards the company with improving financial performance, strong capital base, good market positioning, and management’s active efforts to provide shareholders with common dividends and share buybacks.