S&P lowers BancorpSouth view to stable

S&P said it revised the outlook on BancorpSouth Inc. and its subsidiary, BancorpSouth Bank, to stable from positive.

The agency also said it affirmed the BBB- long-term issuer credit rating on BancorpSouth and the BBB long-term and A-2 short-term issuer credit ratings on BancorpSouth Bank.

The outlook revision reflects a view that the ratings appropriately capture the company's relative creditworthiness, which incorporate an assessment of the bank's ongoing regulatory issues, uncertainty regarding previously announced acquisitions and the further decline expected in capital ratios, S&P said.

BancorpSouth's large construction loan exposures have grown materially in recent years and are higher than most rated U.S. regional banks, the agency said.

This type of lending generated significant net charge-offs for the bank in 2009 through 2012, S&P said.

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