Moody's might cut People's United

Moody's Investors Service said it placed the A3 long-term rating of People's United Financial, Inc. on review for possible downgrade.

The following ratings of the company's lead bank, People's United Bank, were also placed on review for downgrade: the C+ standalone bank financial strength rating; the A2 long-term rating; and Prime-1 the short-term rating.

Moody's said the review will primarily focus on People's United Financial's high loan growth and its effect on the bank's asset quality, capital and liquidity profiles.

Year-over-year growth of gross originated (non-acquired) loans was 17% in 2013 with an emphasis on commercial real estate, equipment finance and residential mortgage loans. Much of this growth has occurred in markets where its deposit market shares are small.

The review will concentrate on expectations for growth by geographic region and asset class, as well as any changes in underwriting standards. The bank's asset quality performance has been very good, the agency noted.

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