DBRS: Hancock trend negative

DBRS said it confirmed the ratings of Hancock Holding Co. issuer and senior debt rating of A (low) following news of its acquisition of Whitney Holding Corp. for about $1.5 billion.

The agency also said it changed the trend on Hancock's ratings to negative from stable.

DBRS confirmed the short-term instrument ratings' stable trend on its banking subsidiaries, Hancock Bank and Hancock Bank of Louisiana.

The change in trend reflects several concerns, including the common equity raise required by both companies to complete the acquisition. These are dependent on a stable economy, DBRS said.

The agency also said it believes Hancock would benefit from additional management team depth, especially given the combined entity's significantly larger operating platform and more geographically dispersed footprint.

The confirmation of the ratings reflects a view that the combination of Hancock and Whitney is a good strategic fit, creating a top tier Gulf coast regional banking company, DBRS said.

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