Regions Bank 2008 Annual Report Download - page 72

percent to 7.75 percent. Senior debt and bank notes totaled $4.8 billion at December 31, 2008 compared to $1.8
billion at December 31, 2007, reflecting the $3.75 billion TLGP issuance, offset by the maturity of $750 million
of senior debt notes during the year.
During 2007, Regions Financing Trust II issued $700 million of institutional enhanced trust preferred
securities, which are reflected as junior subordinated notes. Also in 2007, $225.8 million of Union Planters trust
preferred securities were called and the related 8.20 percent junior subordinated notes were redeemed.
Other long-term debt at December 31, 2008 and 2007, had weighted-average interest rates of 2.9 percent
and 6.1 percent, respectively, and a weighted-average maturity of 4.9 years at December 31, 2008. Regions has
$62.8 million included in other long-term debt in connection with a seller-lessee transaction with continuing
involvement. See Note 25 “Commitments, Contingencies and Guarantees” to the consolidated financial
statements for further information.
During 2007, Regions filed a shelf registration statement with the SEC. This shelf registration can be
utilized by Regions to issue various debt and/or equity securities, and does not have a limit on the amount of
securities that can be issued.
Regions’ long-term debt includes $175 million of callable subordinated notes that mature in early 2009. See
Note 14 “Long-Term Borrowings” to the consolidated financial statements for additional information regarding
these transactions.
RATINGS
Table 18 “Credit Ratings” reflects the debt ratings of Regions Financial Corporation and Regions Bank by
Standard & Poor’s Corporation, Moody’s Investors Service, Fitch IBCA and Dominion Bond Rating Service as
of December 31, 2008.
A security rating is not a recommendation to buy, sell or hold securities, and the ratings are subject to
revision or withdrawal at any time by the assigning rating agency. Each rating should be evaluated independently
of any other rating.
Table 18—Credit Ratings
Standard
& Poor’s Moody’s Fitch Dominion
Regions Financial Corporation
Senior notes .............................................. A A2 A+ AH
Subordinated notes ......................................... A- A3 A A
Junior subordinated notes ................................... BBB+ A3 A A
Regions Bank
Short-term debt ........................................... A-1 P-1 F1+ R-1M
Long-term bank deposits .................................... A+ A1 AA- AAL
Long-term debt ............................................ A+ A1 A+ AAL
Subordinated debt ......................................... A A2 A AH
Table reflects ratings as of December 31, 2008.
In February 2009, Regions Financial Corporation’s senior notes, subordinated notes, and junior
subordinated notes were downgraded to A3, Baa1, and Baa1, respectively, by Moody’s, reflecting the
Company’s concentration in residential homebuilder and home equity lending, particularly in Florida. Also,
Moody’s downgraded Regions Bank’s long-term bank deposits, long-term debt, and subordinated debt to A2,
A2, and A3, respectively. These downgrades are not expected to have a significant impact on Regions’ earnings
in 2009.
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