Fitch lowers PacWest Bancorp

Fitch Ratings said it downgraded PacWest Bancorp and its subsidiary bank Pacific Western Bank’s long-term issuer default rating to BB+ from BBB- and short-term issuer default rating to B from F3.

The ratings were removed from rating watch negative, where they were placed on March 15.

The bank's long-term deposit rating was downgraded to BBB- from BBB.

The outlook is negative.

“Today's rating action reflects a deterioration in PACW's funding and liquidity profile in the wake of market disruptions following the failure of Silicon Valley Bank,” the agency said in a news release.

“Moreover, this action reflects PACWs greater reliance on non-core funding, which will negatively impact earnings and profitability, which Fitch had previously viewed as supportive of PACWs credit profile.”

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