Research Update: BancorpSouth Inc. And BancorpSouth Bank Issuer Credit Ratings Lowered; Outlook Is Stable Dec 11
- Language: English
- Published: December 2011
Strong market position in Mississippi Solid capital levels Good revenue diversification Consistent pre-provision earnings profile High exposure to real estate-related loans Geographic concentration in Mississippi Elevated nonperforming asset levels from asset quality deterioration The stable outlook reflects our expectation BancorpSouth Bank's credit quality, capital adequacy as measured by Standard & Poor's Ratings Services' RAC ratio, and profitability will remain stable throughout 2011 and into 2012. If credit quality were to deteriorate such that NPAs (including other real estate owned assets) approach 7% of gross loans leading to higher credit costs and reduced profitability, or if the bank's RAC ratio falls below 7%, we could revise the outlook to negative and/or lower the ratings. On the other hand, if asset quality...
Companies mentioned in this report are: BancorpSouth Bank,BancorpSouth Inc.,BancorpSouth Capital Trust I
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Full Analysis
BancorpSouth Bank,BancorpSouth Inc.,BancorpSouth Capital Trust I