DBRS affirms Regions Financial

DBRS said that Regions Financial Corp.'s BBB issuer and senior debt rating and negative trend are unchanged, following the release of the company's fourth-quarter earnings results.

DBRS noted that the fourth-quarter results benefitted from the sale of $8.1 billion in agency MBS that generated $333 million in investment security gains preserving capital. Credit quality continued to improve as the company sold $405 million of real-estate loans, 76% of which were non-accrual asset sales.

Regions' results reflect the progress the company has made in dealing with its significant asset quality challenges, but they also highlight the lagging pace of the credit quality improvement and the difficulty that the company faces in restoring profitability to pre-crisis levels, DBRS said.

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