S&P upgrades Regions Financial

Standard & Poor's said it raised its long-term and short-term issuer credit ratings on Regions Financial Corp. to BBB/A-2 from BBB-/A-3.

At the same time, the agency raised its long-term rating on primary banking subsidiary Regions Bank to BBB+ from BBB and affirmed the short-term rating at A-2.

The outlooks are stable.

"Our one-notch upgrade recognizes Regions' progress in lowering the risk on its balance sheet," S&P credit analyst Barbara Duberstein said in a news release.

This is reflected in the decline in problem loans (including troubled debt restructurings) as well as the build-up of capital ratios. S&P expects that nonperforming assets will continue to decrease through 2015, benefiting from the economic recoveries in Regions' Southeast U.S. markets, particularly Florida, Georgia and Alabama.

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