DBRS downgrades Colonial BancGroup

DBRS said it downgraded the senior debt rating for Colonial BancGroup, Inc. to C from CC, the senior debt rating for Colonial Bank to CC from CCC and the bank's subordinated debt rating to C from CC. The bnk's deposit rating is unchanged at CCC.

All ratings remain under review with negative implications.

The downgrade follows Colonial's disclosures regarding SEC and U.S. Department of Justice investigations into its operations and accounting. The agency said the rating actions reflect its view that the SEC and the Department of Justice investigations will place additional significant strain on Colonial's ability to survive and remain as a going concern.

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