S&P: Whitney on positive watch

Standard & Poor's said it placed on Credit Watch with positive implications the BB/B counterparty credit ratings on Whitney Holding Corp., along with its BB+/B counterparty credit rating on its primary banking subsidiary, Whitney National Bank.

The watch action follows news that Whitney has entered into a definitive agreement to merge into Hancock Holding Co. in a stock-for-stock transaction valued at $1.5 billion, S&P said.

Whitney's business franchise makes the company an appealing merger partner for Hancock to consolidate strength in largely overlapping footprints, the agency said.

However, S&P said it believes that Whitney's prolonged credit quality struggles in the construction and commercial real estate portfolios have weakened its financial profile substantially.

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