Fitch Rates Northern Trust's Preferred Stock Issuance 'BBB'

CHICAGO--(BUSINESS WIRE)--

Fitch Ratings has assigned a 'BBB' rating to Northern Trust Corporation's (Northern) preferred stock issuance.

The preferred stock rating is detailed below and is consistent with Fitch's notching criteria from each of the entities Viability Rating (VR). Northern's IDR is currently rated

'AA-/F1+'; VR 'aa-' by Fitch; all of which were last affirmed on Feb. 12, 2014, following Fitch's trust and processing bank peer review.

The five notch differential in the ratings of Northern's preferred stock include two notches for loss severity given these securities deep subordination in the capital structure, and three notches for non-performance given that the coupon of the securities is non-cumulative and fully discretionary.

KEY RATING DRIVERS - PREFERRED STOCK AND OTHER HYBRID SECURITIES

Northern's preferred stock rating is five notches below the entities VR of 'aa-' in accordance with Fitch's assessment of each instrument's respective non-performance and relative loss severity risk profiles.

KEY RATING SENSITIVITIES - PREFERRED STOCK AND OTHER HYBRID SECURITIES

The ratings of preferred stock issued by Northern are primarily sensitive to any change in the company's VR.

Fitch Rates the following:

Northern Trust Corporation

--Preferred Stock 'BBB'.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Global Financial Institutions Rating Criteria' (January 2014);

--'Rating FI Subsidiaries and Holding Companies' (January 2014);

--'Assessing and Rating Bank Subordinated and Hybrid Securities' (January 2014);

--'U.S. Bank HoldCos & OpCos: Evolving Risk Profiles' (March 2014).

Applicable Criteria and Related Research:

Global Financial Institutions Rating Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=732397

Rating FI Subsidiaries and Holding Companies

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=679209

Assessing and Rating Bank Subordinated and Hybrid Securities Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=732137

U.S. Bank HoldCos & OpCos: Evolving Risk Profiles

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=742096

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=842478

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