Moody's downgrades Pacific Capital

Moody's Investors Service said it downgraded Pacific Capital Bancorp's issuer rating to Caa1 from Ba1 and Pacific Capital Bank, NA's issuer rating to a range of B2 to Not-Prime from a range of Baa3 to Prime-3, its other senior obligation rating to Not-Prime from Prime-3 and its other senior unsecured obligation rating to B2 from Baa3.

The long-term ratings remain on review for possible downgrade.

Moody's said the downgrade follows Pacific Capital's announcement of a $363 million loss for the second quarter and reflects the agency's opinion that given the likely credit costs in Pacific Capital's real estate lending portfolios and inability to tax effect losses, there is a risk of the firm becoming undercapitalized without external capital raising.

The ratings remain under review pending the outcome of Pacific Capital's review of its strategic alternatives as well as its ability to meet its higher regulatory capital requirements at the bank level.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.