Webster Financial Corp. Ratings Raised By Standard & Poor's

Feb 22, 1999

WATERBURY, Conn., Feb. 22 /PRNewswire/ -- Standard & Poor's recently raised Webster Financial Corporation's (Nasdaq: WBST) senior debt rating and long-term and short-term credit ratings.

The corporation's senior debt rating was raised to investment grade from BB+ to BBB-. Credit ratings for Webster's subsidiaries -- Webster Bank, Webster Preferred Capital Corporation and Webster Capital Trust 1 -- were also raised.

Credit Ratings                 TO             FROM

Webster Financial Corp.
     Senior debt               BBB-           BB+
   Counterparty rating         BBB-           BB+


Webster Bank
   CDs                         BBB/A-2        BBB-/A-3
  Counterparty rating          BBB/A-2        BBB-/A-3


Webster Preferred Capital Corp.
     Preferred Stock           BB+            BB

Webster Capital Trust 1        BB             BB-

The upgrades were based on Webster's solid capital levels, strong funding profile, improved financial performance, and relatively low-risk but evolving loan portfolio.

According to Standard & Poor's, Webster's financial profile ''has benefited from a history of successful merger integrations.'' Excluding acquisition- related expenses, recent earnings have improved during the last several years, including a 27 percent increase in net operating income for the fourth quarter ending Dec. 31, 1998. For the full year 1998, Webster reported a 35 percent increase in net operating income to a record $86.9 million.

Webster Financial Corporation, headquartered in Waterbury, Conn., is the holding company for Webster Bank, which was founded in 1935. Webster Bank delivers consumer, commercial, mortgage, insurance, and trust and investment management services to individuals, families and businesses through a network of more than 100 banking offices, three commercial banking centers, two insurance offices, and more than 170 ATMs, in addition to telephone banking, video banking and PC banking.

Webster Bank has the number one or number two deposit market share in its primary markets of Hartford, New Haven and Litchfield counties. Webster is also the second-largest mortgage lender in Connecticut and a leading, full- service commercial lender. Webster Trust, the bank's trust and investment management subsidiary, is the second-largest bank trust company based in Connecticut. Webster's insurance subsidiary, Damman Insurance Associates, is one of the largest agencies in the state.