Fitch Ratings has placed the ratings of Zions Bancorporation (ZION) and its subsidiary banks, including its lead bank, Zions First National Bank (currently rated 'A-' and 'F1', respectively, by Fitch), on Rating Watch Negative. A complete list of all ratings is provided at the end of this release.
ZION has continued to struggle with asset quality issues primarily centered in its construction and land development portfolio as well as impairments in its investment securities portfolio. While Fitch believes ZION has been proactive in addressing some of these concentrations, continued economic headwinds have limited the company's ability to reduce NPA levels. Additionally, the level of NPAs has continued to climb with deterioration spreading into other portfolios, necessitating excess provisioning and hampering the company's ability to return to profitability. The company has also had a high level of write-downs in its investment securities portfolio.
The Negative Watch will be resolved following a further evaluation of ZION's loan portfolios, its near- to intermediate term earnings prospects, as well as current and expected capitalization levels.
Fitch has placed the following ratings on Negative Watch:
Zions Bancorporation
--Long-term Issuer Default Rating (IDR) 'A-';
--Short-term IDR 'F1';
--Commercial Paper 'F1';
--Senior Debt 'A-';
--Subordinated Debt 'BBB+';
--Preferred Stock 'BBB+';
--Individual 'B'.
Zions First National Bank
Amegy Bank, NA
California Bank & Trust
Nevada State Bank
National Bank of Arizona
Vectra Bank Colorado NA
The Commerce Bank of Oregon
The Commerce Bank of Washington
--Long-term IDR 'A-';
--Long-term Deposits 'A';
--Short-term IDR 'F1';
--Short-term Deposits 'F1'
--Individual 'B'.
Zions Institutional Capital Trust A
--Preferred Stock 'BBB+'.
Fitch has affirmed the following ratings:
Zions Bancorporation
--Support '5';
--Support Floor 'NF'.
--FDIC Guaranteed Long-term debt 'AAA';
--FDIC Guaranteed short-term debt 'F1+'.
Zions First National Bank
Amegy Bank, NA
California Bank & Trust
Nevada State Bank
National Bank of Arizona
Vectra Bank Colorado NA
The Commerce Bank of Oregon
The Commerce Bank of Washington
--Support '5';
--Support Floor 'NF'.
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.
Contacts:
Fitch Ratings, New York
John Mackerey, 212-908-0366
Eric
Newell, 212-908-0769
or
Media Relations:
Sandro Scenga,
212-908-0278
Email: sandro.scenga@fitchratings.com