DBRS downgrades Pacific Capital

DBRS said it downgraded Pacific Capital Bancorp's issuer and senior debt ratings to BBB from BBB (high), subordinated debt to BBB (low) and short-term instruments to R-2 (middle) and bank subsidiary Pacific Capital Bank, NA's senior debt to BBB (high), subordinated debt to BBB and short-term instruments to R-2 (high).

The ratings were placed under review with negative implications.

The agency said the downgrade follows a first-quarter loss of $7.9 million driven by continued elevated loan loss provisioning and weaker-than-anticipated refund anticipation loan results.

The company's ratings are underpinned by a well-established community banking franchise along the demographically attractive central California coastline, DBRS said, and take into account its strong niche in the nationwide refund anticipation loan and refund transfer programs.

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