Fitch cuts W.T.B.

Fitch Ratings said it downgraded the long-term issuer default ratings for W.T.B Financial Corp. and its principal banking subsidiary Washington Trust Bank to BBB from BBB+. Fitch also downgraded W.T.B.'s preferred stock to BB+ from BBB- and affirmed its short-term issuer default rating at F2.

Fitch also downgraded Washington Trust's long-term deposits to BBB+ from A-.

The outlook is stable.

The downgrade is due in part to W.T.B.'s still elevated, although moderately improved, asset quality metrics particularly given the company's relatively small size compared to its rated peer group, Fitch said.

W.T.B. continues to have an elevated number of problem loans in its most problematic construction portfolios. However, the company has made progress in reducing the number of problem loans in this portfolio on an absolute basis, the agency said.

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