Moody's cuts Regions Financial

Moody's Investors Service said it downgraded Regions Financial Corp.'s senior rating to Ba3 from Ba1. The agency also said it downgraded its lead bank, Regions Bank's long-term deposits to Ba1 from Baa3, short-term ratings to not-prime from prime-3 and left all of its long-term ratings under review for further possible downgrade.

The downgrade follows news of the company's senior leadership changes in its risk management organization, Moody's said.

The agency said that Regions has continued to face significant asset quality issues given its credit concentrations as demonstrated by substantial inflows of non-performing assets in the third quarter of 2010.

This, coupled with the significant leadership changes in the company's risk management organization, raises serious concerns regarding the firm's controls and the path of future asset quality charges, Moody's said.

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