Regions Bank 2012 Annual Report Download - page 112

Regions Bank, was upgraded to Baa3 from Ba2 for long-term debt, to Baa3 from Ba1 for long-term deposits, and
to Prime-3 from Not-Prime for short-term deposits. The standalone bank financial strength rating was affirmed at
D+, but its baseline credit assessment was raised to Baa3 from Ba1. The holding company’s short-term rating
was affirmed at Not-Prime. Following the rating action, the outlook is stable. The upgrade reflects Regions’
improved asset quality. The upgrade also incorporates Regions’ enhanced risk management infrastructure and
reduced asset concentrations placing the company in a better position to weather another real estate cycle.
Table 27 “Credit Ratings” reflects the debt ratings information of Regions Financial Corporation and
Regions Bank by S&P, Moody’s, Fitch and DBRS as of December 31, 2012 and 2011.
Table 27—Credit Ratings
As of December 31, 2012
Standard
& Poor’s Moody’s Fitch DBRS
Regions Financial Corporation
Senior notes ......................................... BBB- Ba1 BBB- BBB
Subordinated notes .................................... BB+ Ba2 BB+ BBBL
Junior subordinated notes ............................... BB Ba3 B+ BBBL
Regions Bank
Short-term debt ....................................... A-2 P-3 F3 R-2H
Long-term bank deposits ............................... BBB Baa3 BBB BBBH
Long-term debt ....................................... BBB Baa3 BBB- BBBH
Subordinated debt ..................................... BBB- Ba1 BB+ BBB
Outlook Stable Stable Positive Stable
As of December 31, 2011
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(1) F3 R-2H
Long-term bank deposits ............................... BBB- Ba1 BBB BBBH
Long-term debt ....................................... BBB- Ba2 BBB- BBBH
Subordinated debt ..................................... BB+ Ba3 BB+ BBB
Outlook Stable Negative Stable Negative
(1) Not Prime
In general, ratings agencies base their ratings on many quantitative and qualitative factors, including capital
adequacy, liquidity, asset quality, business mix, probability of government support, and level and quality of
earnings. Any downgrade in credit ratings by one or more ratings agencies may impact Regions in several ways,
including, but not limited to, Regions’ access to the capital markets or short-term funding, borrowing cost and
capacity, collateral requirements, acceptability of its letters of credit, and funding of variable rate demand notes
(“VRDNs”), thereby potentially adversely impacting Regions’ financial condition and liquidity. 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.
96