S&P rates Umpqua Holdings BBB-

S&P said it assigned its BBB-/A-3 long- and short-term issuer credit ratings to Umpqua Holdings Corp. and its BBB/A-2 long- and short-term term issuer credit ratings to Umpqua Bank.

The outlooks are stable.

“Our ratings on Portland, Ore.-based UMPQ reflect the bank's stable deposit franchise, good credit performance, and adequate capital levels,” the agency said in a news release.

“We also view positively the near-term strategy that the management team is pursuing to improve fee income and rationalize costs.

“Offsetting these strengths is a relatively narrow regional footprint in the Northwestern states of Oregon and Washington, business concentration in commercial real estate (CRE) lending, less-diversified revenue stream with a high reliance on spread income and cyclical mortgage fees, and a high-cost branch footprint.”

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