DBRS may cut Fifth Third

DBRS said it has placed the long- and short-term ratings of Fifth Third Bancorp and its operating bank subsidiaries, including Fifth Third's issuer and senior debt rating of A and Fifth Third Bank subsidiary's long and short-term ratings of A (high) and R-1 (middle), respectively, under review with negative implications.

The review reflects DBRS' view that Fifth Third has experienced net losses over the past four quarters as it struggles with steepening credit costs from asset quality that has deteriorated for the past two years coupled with weaker core income before provisions and taxes.

Importantly, the $5.1 billion of loan loss provisions taken in the past four quarters, including $952 million in Q3 2009, was more than 2.3 times the company's adjusted income before taxes and provisions of roughly $2.2 billion, the agency said.

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