New York, October 30, 2015 -- Moody's Investors Service has placed on review for downgrade the ratings of KeyCorp and its lead bank subsidiary, Key Bank National Association (collectively, KeyCorp) following the announcement that it has agreed to acquire First Niagara Financial Group in a stock and cash transaction expected to close in third quarter 2016. Key Bank has long-term bank deposit ratings of Aa3, senior unsecured debt ratings of A3, subordinated debt ratings of Baa1, a standalone baseline credit assessment (BCA) of a3 and adjusted BCA of a3, and long-term Counterparty Risk (CR) Assessments of A2 (cr). KeyCorp has issuer and senior unsecured debt ratings of Baa1 and preferred stock ratings of Baa3 (hyb). KeyCorp Capital I, KeyCorp Capital II, and KeyCorp Capital III are all rated Baa2(hyb) for backed preferred stock. The bank's short term Prime-1 deposit ratings and counterparty risk (CR) assessment of Prime-1(cr), and the holding company's (P)Prime-2 short-term ratings are unaffected by this action.
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