S&P Places First Niagara Financial Group (FNFG) on CreditWatch Positive

S&P Global Ratings said it placed its ratings, including its 'BBB-' issuer credit and senior unsecured debt ratings, on First Niagara Financial Group Inc. (Nasdaq: FNFG) on CreditWatch with positive implications.

"The CreditWatch placement follows regulatory approval for KeyCorp to proceed with its acquisition of FNFG," said S&P Global Ratings credit analyst Lidia Parfeniuk. The transaction is expected to close on or about Aug. 1, 2016.

We believe that FNFG will benefit from being acquired by an operationally stronger and higher-rated financial institution. If the acquisition is completed as expected, we would raise the ratings on FNFG to the same level as those on KeyCorp.

At transaction close, we will also withdraw our rating on FNFG but maintain our rating on First Niagara Bank (BBB), which will be merged into KeyBank N.A. later this year. In addition, we will maintain our ratings on FNFG's rated issues, which will be assumed by KeyCorp at deal close

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