Research Update: M&T Bank Corp. Outlook Revised To Negative On Increase In Problem Assets; 'A-/A-2' Ratings Affirmed

Based on criticized and classified loan balances and the large proportion of borrowers that have previously received payment relief, we think there M&T Bank Corp.'s loan performance metrics could lag similarly rated peers', which could result in additional loan provisions and an increase in reserves. We are revising our outlook on M&T to negative from stable. At the same time, we are affirming our 'A-/A-2' ratings on M&T Bank Corp. and our 'A/A-1' ratings on Manufacturers&Traders Trust Co., its primary bank subsidiary. The negative outlook reflects the possibility that M&T's loan performance could deteriorate to levels that are weaker than similarly rated peers'. On Aug. 12, 2020, S&P Global Ratings revised the outlooks on the long-term ratings on

...- Based on criticized and classified loan balances and the large proportion of borrowers that have previously received payment relief, we think there M&T Bank Corp.'s loan performance metrics could lag similarly rated peers', which could result in additional loan provisions and an increase in reserves. - We are revising our outlook on M&T to negative from stable. - At the same time, we are affirming our 'A-/A-2' ratings on M&T Bank Corp. and our 'A/A-1' ratings on Manufacturers & Traders Trust Co., its primary bank subsidiary. - The negative outlook reflects the possibility that M&T's loan performance could deteriorate to levels that are weaker than similarly rated peers'....

Research Update