Regions Bank 2010 Annual Report Download - page 97

Table 17 “Credit Ratings” reflects the debt ratings information of Regions Financial Corporation and
Regions Bank by S&P, Moody’s Investors Service, Fitch Ratings and DBRS at December 31, 2010 and 2009.
Table 17—Credit Ratings
As of December 31, 2010
Standard
& Poor’s Moody’s Fitch DBRS
Regions Financial Corporation
Senior notes .............................................. BB+ Ba3 BBB- BBB
Subordinated notes ......................................... BB B1 BB+ BBBL
Junior subordinated notes .................................... B B2 BB BBBL
Regions Bank
Short-term debt ............................................ A-3 NP* F3 R-2H
Long-term bank deposits .................................... BBB- Ba1 BBB BBBH
Long-term debt ............................................ BBB- Ba2 BBB- BBBH
Subordinated debt .......................................... BB+ Ba3 BB+ BBB
* Not Prime
As of December 31, 2009
Standard
& Poor’s Moody’s Fitch DBRS
Regions Financial Corporation
Senior notes .............................................. BBB Baa3 BBB+ AL
Subordinated notes ........................................ BBB- Ba1 BBB BBBH
Junior subordinated notes ................................... BB Ba2 BBB- BBBH
Regions Bank
Short-term debt ........................................... A-2 P-2 F2 R-1L
Long-term bank deposits .................................... BBB+ Baa1 A- A
Long-term debt ........................................... BBB+ Baa1 BBB+ A
Subordinated debt ......................................... BBB Baa2 BBB AL
On November 1, 2010, Moody’s Investors Service downgraded the ratings of 10 large U.S. regional banks,
including Regions, after reducing its government support assumptions for these entities. The rationale for the
downgrades reflects Moody’s view that the likelihood of government support for these institutions is lower now
that the U.S. Banking system has moved beyond the financial crisis. Shortly following the downgrade by
Moody’s, Regions Financial Corporation and Regions Bank received downgrades from each of the other ratings
agencies, citing concerns regarding Regions’ credit quality, specifically commercial real estate loan exposures
and unfavorable geographic concentrations, and the related implications for its capital, as the primary
determinants of the ratings actions.
At December 31, 2010, Moody’s and S&P’s credit ratings for Regions were below investment grade. For
Regions Bank, Moody’s credit ratings were below investment grade. Regions and Regions Bank remain on a
credit watch with negative implications from Moody’s. Additionally, many obligations of Regions and Regions
Bank remain on negative outlook by the agencies referred to above. See the “Risk Factors” section of this Annual
Report on Form 10-K for more information.
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.
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