Moody's: Zions outlook negative

Moody's Investors Service said it confirmed Zions Bancorporation's senior rating at A3 and changed the outlook to negative. This concludes the review for downgrade that began in August.

Moody's said the confirmation reflects the sizable increase to the company's capital base stemming from the recent sale of $1.4 billion of preferred stock and related warrants to the U.S. Treasury, as well as a $250 million issuance of common stock in the third quarter.

The negative outlook reflects the possibility that for accounting purposes, Zions remains exposed to other than temporary impairment charges on its collateralized debt obligation portfolio, which could exceed the ultimate loss in economic value, according to the agency.

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