Fitch reviews Astoria

Fitch Ratings said it placed the BBB- long-term issuer default ratings of Astoria Financial Group, Inc. and its principal banking subsidiary, Astoria Bank, on Rating Watch Evolving.

On March 7, Astoria Financial and Sterling Bancorp (unrated) announced that they entered into a definitive merger agreement in a stock-for-stock transaction valued at about $2.2 billion.

The Rating Watch Evolving reflects uncertainty as to the ultimate credit profile of Astoria Financial. During the Rating Watch period, Fitch said it will evaluate Sterling Bancorp's credit profile on a pro forma basis with Astoria.

The agency would expect to resolve the rating watch upon closing of the transaction, which is expected to occur in the fourth quarter of 2017.

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