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KeyCorp
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KeyCorp
Subordinated debt Senior unsecured Securitisation
-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
2005 2006 2007 2008 2009 2010
Source: Dealogic. Data to August 20 2010
$m
Debt issuance
%
Source: KeyBank
0
2
4
6
8
10
12
14
16
18
20
2Q09 3Q09 4Q09 1Q10 2Q10
Tier one Total capital
Debt issuance
capital ratios
pricing date: August10,2010
Value: $750m
Maturity date: August13,2015
coupon: 3.75%
spread to benchmark: 225bpoverUSTs
bookrunners: JPMorgan,KeyBancCapitalMarkets,MorganStanley
Guarantor: FederalDepositInsuranceCorp
pricing date: March10,2009
Value: $437.5m
Maturity date: April16,2012
coupon: 1mLibor+43bp
bookrunners: CreditSuisse,JPMorgan
Guarantor: FederalDepositInsuranceCorp
pricing date: December10,2008
Value: $250m
Maturity date: December15,2010
coupon: 3mLibor+65bp
bookrunners: KeyBancCapitalMarkets,CreditSuisse,MorganStanley,UBS
Source: Dealogic
rank lead Manager amount $m no of issues
% share
1 Morgan Stanley 250 1 33.33
1 KeyBanc Capital Markets
250 1 33.33
1 JPMorgan 250 1 33.33
subtotal 749 1 100
total 749 1 100
Source: Dealogic (Sep 20, 2009 to Sep 19, 2010)
recent Deals
-
500
1,000
1,500
2,000
2,500
2010
20
11
2012
2013
2014
20
15
2016
2017
2018
2019
2020
2021
-204
0
2041
+
Source: Dealogic. Data to September 1, 2010 (securitisations not included)
$m
Maturity profile
top bookrunners
Director, investor relationsVern Patterson+1 216 689 [email protected]
key contacts
keycorp
long term iDr a- (negative outlook)short term iDr f1individual rating csupport rating 5support rating floor no floor
summary:KEY’s long-term issuer default rating of A- incorporates the strength of its regionally diverse franchise, with a presence in the north-east, north-west/Rocky Mountains and Great Lakes, improved capital levels and solid funding profile. Fitch currently has a negative outlook on the bank, reflecting expected asset quality deterioration over the cycle both in terms of problem assets and loan losses.
KEY has taken steps to reduce its risk profile, but the company has not been immune to adverse impacts to operating results. The company’s exit portfolio has contributed an outsized portion of non-performing assets and net charge-offs. KEY has been aggressive in dealing with these portfolios, which include the homebuilder, national home equity and the other consumer books.
Asset quality deterioration has spread to other portions of the loan portfolio necessitating continued elevated loan loss provisioning and hampering the company’s return to profitability. With $98bn in assets, KEY operates nearly 1,000 branches in 14 diverse states in three regions. KEY also operates some business lines nationally.
fitch ratinGs upDate
KeyCorp
%
From continuing operations. Source: KeyBank
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
2Q09 3Q09 4Q09 1Q10 2Q10
Net interest margin Net interest spread
%
Data at June 30, 2010. Source: KeyBank
Core deposits 84%
Deposits in foreign offices
1%
Short-term borrowings
3% Long-term debt 9%
Education loan securitisation trusts
3%
$m
Attributable to Key. Source: KeyBank
-250
-200
-150
-100
-50
0
50
100
150
2Q09 1Q10 2Q10
Income from continuing operations Net income
net interest MarGin (te)aVeraGe Deposit & funDinG sources incoMe stateMent
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$bn
Source: KeyBank
Jun 30, 2009
Dec 31, 2009
Jun 30, 2010
91
92
93
94
95
96
97
98
99 $bn
*Excludes foreign office deposits. Source: KeyBank
0.0
10.0
20.0
30.0
40.0
50.0
60.0
70.0
80.0
2Q09 3Q09 4Q09 1Q10 2Q10
Average loans Average deposits*
%
Data at June 30, 2010. Source: KeyBank
0
1
2
3
4
5
6
7
8
9
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