The ratings for Buffalo-based M&T Bank Corp. (M&T) are based on its dominant market share in upstate New York and central Pennsylvania, improved profitability, and better-than-average asset quality. In light of M&T's recent announcement regarding the proposed acquisition of Allfirst Financial (Allfirst), a subsidiary of Allied Irish Bank Plc. (AIB), the ratings also reflect Standard&Poor's position that the combined entity would be substantially more diverse with broad geographic reach, including upstate New York, Pennsylvania, Maryland, and Virginia, and would maintain strong market shares in that region. There is little overlap between the two institutions, but approximately $100 million in cost savings is projected. Synergistic opportunities exist, as Allfirst's retail and asset management businesses would be complemented by M&T's
