DBRS downgrades Regions

DBRS said it downgraded the long- and short-term ratings of Regions Financial Corp. and its operating subsidiaries, including Regions' issuer and senior debt ratings to BBB (high) from A (low), and the long- and short-term ratings of its operating bank subsidiary, Regions Bank, to A (low) from A and placed the ratings under review with negative implications.

FDIC-guaranteed AAA debt ratings were confirmed.

The agency said the downgrade reflects its view that Regions continues to struggle with steep asset quality deterioration and credit costs are weighing on its performance. DBRS also is concerned about the company's weakening level of adjusted income before provisions and taxes and, importantly, the widening gap between loan loss provisions and adjusted income before provisions and taxes, which currently measures over three times.

Given current trends, DBRS expects Regions to report additional significant net income losses in 2010 and potentially 2011.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.