Fitch Ratings has affirmed BOK Financial Corporation's (BOKF) long- and
short-term Issuer Default Ratings (IDRs) as follows:
--Long-term IDR 'A-';
--Short-term IDR 'F1'.
The rating affirmation follows BOKF's disclosure of its exposure to
SemGroup, L.P. which recently filed for bankruptcy protection following
large trading losses. BOKF had credit exposure through loans and
derivative contracts totaling approximately $147 million. Additionally,
until recently SemGroup's CEO and founder was on BOKF's board of
directors.
With this new information, BOKF plans to adjust its previously released
second quarter-2008 (2Q'08) results to reflect additionally charges of
approximately $71 million (pre-tax) essentially wiping out the quarter's
earnings. BOKF expects to return to profitability in 3Q'08. This appears
to be an isolated problem and not indicative of a breakdown of BOKF's
procedures or underwriting process. That said, the derivative business
has shown increasing volatility with energy prices and BOKF's exposure
to this business remains relatively large.
As with much of the industry, BOKF has been impacted by the down-turn in
credit metrics. However, thus far BOKF's impact has been less severe
than many especially given the company's exposure to some markets in the
Southwest that have been problematic. Additionally, capital levels
remain sound.
Fitch has affirmed the following ratings with a Stable Outlook:
BOK Financial Corporation
--Long-term IDR 'A-';
--Short-term IDR 'F1';
--Individual 'B';
--Support '5';
--Support Floor 'NF'.
Bank of Oklahoma, NA
--Long-term IDR 'A-';
--Subordinated debt 'BBB+';
--Long-term deposits 'A';
--Short-term IDR 'F1';
--Short-term deposits 'F1';
--Individual 'B';
--Support Floor 'NF'.
Fitch's rating definitions and the terms of use of such ratings are
available on the agency's public site, www.fitchratings.com.
Published ratings, criteria and methodologies are available from this
site, at all times. Fitch's code of conduct, confidentiality, conflicts
of interest, affiliate firewall, compliance and other relevant policies
and procedures are also available from the 'Code of Conduct' section of
this site.
Fitch Ratings
John Mackerey, 212-908-0366, New York
Julie
Solar, 312-368-5472, Chicago
or
Media Relations:
Sandro
Scenga, 212-908-0278, New York
