Fitch places PacWest Bancorp on watch

Fitch Ratings said it placed the ratings of PacWest Bancorp and its subsidiary bank Pacific Western Bank on rating watch negative.

The RWN follows PacWest issuing a press release that it was reviewing its options, including talks with potential investors and partners. Fitch said.

“The rating action is therefore driven by the impact of a potential transaction and the uncertainty regarding the bank's strategic direction, which could have negative impacts on the company's credit profile. Today's action does not reflect a material change in Fitch's view of the company's fundamental credit profile since its April 14, 2023 downgrade, but acknowledges that recent events and a potential transaction may impact the company's credit ratings,” the agency said in a press release.

Fitch said it would continue to monitor the bank’s “progress in repaying wholesale borrowings, changes to its strategic direction, assessing any impairments to its franchise, and ability to attract core deposits in resolving its rating.”

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