Research Update: M&T Bank Corp. Ratings Affirmed Following Acquisition Announcement; Outlook Remains Negative

On Feb. 22, 2021, New York-based M&T Bank Corp. agreed to acquire People's United Financial Inc. for approximately $7.6 billion in an all-stock transaction. M&T expects the acquisition to close in the fourth quarter of 2021. The combined company will create a much larger and more diversified regional banking franchise with about $200 billion in assets, operating across 12 states. We are affirming our 'A-' rating on M&T Bank Corp. and our 'A/A-1' ratings on Manufacturers&Traders Trust Co., its primary bank subsidiary. The negative outlook primarily reflects our view that asset quality pressures will likely persist, although we view the announced acquisition of People's somewhat favorably, given the resulting improved scale and diversification. On Feb. 23, 2021, S&P

...- On Feb. 22, 2021, New York-based M&T Bank Corp. agreed to acquire People's United Financial Inc. for approximately $7.6 billion in an all-stock transaction. M&T expects the acquisition to close in the fourth quarter of 2021. - The combined company will create a much larger and more diversified regional banking franchise with about $200 billion in assets, operating across 12 states. - We are affirming our 'A-' rating on M&T Bank Corp. and our 'A/A-1' ratings on Manufacturers & Traders Trust Co., its primary bank subsidiary. - The negative outlook primarily reflects our view that asset quality pressures will likely persist, although we view the announced acquisition of People's somewhat favorably, given the resulting improved scale and diversification....

Research Update