Moody's: Riggs outlook negative

Moody's Investors Service said it has changed the outlook on Riggs National Corp. (subordinated at Ba2) and its principal subsidiary, Riggs Bank NA (deposits at Baa2) to negative from stable.

The action follows announcement that the OCC is considering civil monetary penalties in connection with violations of Bank Secrecy Act requirements and non-compliance with the consent order in force. Additionally, the OCC is considering classifying the institution as being in "troubled condition" which would subject it to a higher level of regulatory supervision.

Moody's said the change in outlook reflects its concern that Riggs' deposit franchise, an important element of support for the ratings, could be adversely affected by these and subsequent developments, which would weaken future profitability.

Moody's noted that while profitability at the company is weak, Riggs' liquidity profile is robust, asset quality is good and its capital adequacy sound.

© 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.