This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

S&P Cuts First Midwest Rating On Real Estate Loans

NEW YORK (AP) ¿ Standard & Poor's Ratings Services on Monday lowered its counterparty credit rating on First Midwest Bancorp Inc., citing its high risk portfolio of commercial real estate loans.

S&P lowered its counterparty credit rating on First Midwest to "BBB-/A-3" from "BBB/A-2."

At the same time, S&P lowered its counterparty credit rating on subsidiary First Midwest Bank to "BBB/A-2" from "BBB+/A-2."

The outlook for the Itasca, Ill.-based bank is negative.

"The downgrade reflects our expectation that the bank's credit quality will remain under significant pressure throughout 2009 and 2010, which we believe will have a negative impact on the company's earning and capital," said S&P credit analyst Vikas Jhaveri in a statement announcing the cuts. "First Midwest will have to face the challenges inherent in its commercial real estate portfolio, which is concentrated in a limited geographic area."

The bank's recent capital raise should help mitigate some of the pressures, Jhaveri said, but noted that about 46 percent of its loans are in commercial real estate.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
FMBI $17.37 0.00%
TBBK $8.93 0.00%
AAPL $124.75 0.00%
FB $80.78 0.00%
GOOG $524.05 0.00%


DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs