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People's United Bank Takes Over Chittenden Corporation
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Connecticut bank People’s United Financial has completed its takeover of Chittenden Corporation – and it’s received a ratings upgrade. 

Bridgeport based People’s United completed what’s called a second step conversion last year to become a completely shareholder owned bank – with the stated aim of expanding beyond Connecticut’s borders.  Its first move was the acquisition of New England bank operator Chittenden Corporation, for almost one-point-seven billion dollars. 

People’s announced Wednesday morning that the deal for the Vermont based company has completed – calling it an important step in achieving the goal of becoming the premier banking franchise in the Northeast.  And the rewards were immediate. Fitch Ratings called the deal a prudent deployment of capital, and upgraded some of People’s debt rating to investment grade.  Fitch has also placed a positive outlook on People’s, a move which means future upgrades are more likely.  Fitch says it will be looking for minimal disruptions as Chittenden is integrated, and continued improvement in balance sheet fundamentals.  The market hasn’t yet been so kind, People’s shares closed down 43 cents or more than two percent.