Moody's cuts First Citizens

Moody's Investors Service said it downgraded First Citizens Bank Ltd. (FCBL) standalone bank financial strength rating to D+ from C-, lowering the baseline credit assessment to baa3 from baa1.

The outlook was revised to stable from negative.

At the same time, the bank's long- and short-term local currency deposit ratings were also downgraded to Baa1/Prime-2 from A2/Prime-1, with the outlook changed to stable from negative. The long- and short-term foreign currency deposit ratings of Baa1/Prime-2 were affirmed with a stable outlook.

The agency also downgraded First Citizens (St. Lucia) Ltd.'s foreign currency senior debt rating to Baa1 from A2 and changed the outlook to stable from negative, as it is mapped directly from the bank's local currency deposit rating.

Moody's said the downgrade of FCBL's standalone bank financial strength rating to D+ from C- reflects corporate governance concerns evidenced by the non-renewal of the mandates of the former chairwoman of the board and three other directors during the annual meeting of shareholders held on May 12.

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