Capital One Financial Corp. Senior Debt Upgraded To Investment Grade by Moody s
Capital One Financial Corp. Senior Debt Upgraded To Investment Grade by Moody s
FALLS CHURCH, Va., June 24 /PRNewswire/ -- Moody's Investors Service this week raised the credit rating of Capital One Financial Corporation (NYSE: COF) to Baa3 on its senior debt. The company's subsidiaries, Capital One Bank and Capital One, F.S.B., received upgrades on Deposits to Baa1 and Senior Debt to Baa2. This upgrade brings Capital One Financial Corporation's senior debt rating into investment grade, reflecting the consolidated company's successful track record since its initial public offering in 1994. Moody's cited Capital One's strong financial fundamentals, increased funding and product diversity, and continued success in applying its Information-Based Strategy as the primary reasons for the upgrade. Capital One Financial Corporation and Capital One Bank have approximately $4.5 billion in outstanding senior debt. "Our company is built on a foundation of very conservative risk management, as evidenced by the industry's lowest charge-off rate. We are glad to be recognized by the leading rating agency," said Richard D. Fairbank, Chairman and Chief Executive Officer. "Capital One has established a strong track record since the company went public almost five years ago," said David Willey, Senior Vice President of Corporate Financial Management. "Moody's ratings action validates the benefits of our innovative Information-Based Strategy in developing and managing all aspects of our business. This upgrade should reduce our marginal funding costs significantly and improve Capital One's funding flexibility. Our fixed income investors and shareholders have always been extremely supportive of Capital One's management and strategic direction and now they are being rewarded for their support." Headquartered in Falls Church, Virginia, Capital One Financial Corporation (www.CapitalOne.com) is a holding company whose principal subsidiaries, Capital One Bank and Capital One, F.S.B., offer consumer lending and deposit products. Capital One's subsidiaries collectively had 18.0 million customers and $17.4 billion in managed loans outstanding as of March 31, 1999. Capital One trades on the New York Stock Exchange under the ticker symbol "COF" and is included in the S&P 500 Index. SOURCE Capital One Financial Corporation