Fitch upgrades Associated Banc-Corp.

Fitch Ratings said it upgraded Associated Banc-Corp.'s long-term issuer default rating to BBB from BBB-, along with its short-term issuer default rating to F2 from F3.

The outlook was revised to stable from positive.

The agency also upgraded its long-term issuer default rating to BBB from BBB-, senior unsecured debt to BBB from BBB-, viability rating to BBB from BBB-, subordinated debt to BBB- from BB+, preferred stock to B+ from B, short-term issuer default rating to F2 from F3 and commercial-paper rating to F2 from F3.

Fitch also upgraded Associated Bank, NA's long-term issuer default rating to BBB from BBB-, viability rating to BBB from BBB-, long-term deposits to BBB+ from BBB, long-term senior debt to BBB from BBB- and short-term issuer default rating to F2 from F3.

The agency also upgraded Associated Trust Co., NA's long-term issuer default rating to BBB from BBB-, viability rating to BBB from BBB- and short-term issuer default rating to F2 from F3.

The upgrades reflect the steps that management has taken to de-risk the bank's balance sheet and position the bank to generate reasonable returns relative to its risk profile, Fitch said.

The ratings are constrained by the company's relatively weaker core earnings power when compared to higher rated peers, the agency said, as well as the expectation that capital will continue to be managed at levels comparable with similarly rated peers.

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