Fitch Ratings on Monday backed its ratings on about $800 million of CapitalSource Inc. debt after the commercial lender said it will acquire the retail banking operations of Fremont General.
The rating agency said CapitalSource's issuer default and senior unsecured ratings remain "BBB-," while its senior subordinated rating stays at "BB+." The rating outlook is stable.
Chevy Chase, Md.-based CapitalSource announced the deal, which will give it access to the California bank's 22 branches and $5.6 billion in deposits, earlier in the day. CapitalSource will pay a 2 percent premium on the bank's deposits and an additional $58 million for the branches, and will receive a discount on retained interest in certain real estate loans held by Fremont.
"Fitch views this transaction as neutral to CapitalSource and recognizes that this transaction reflects the company's plan to secure access to deposit-based funding that would further diversify its funding platform," Fitch said in a statement.
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