Moody's downgrades Hancock, confirms Whitney

Moody's Investors Service said it downgraded the long-term and short-term ratings of Hancock Holding Co. to Baa1 from A2 following the completion of its acquisition of Whitney Holding Corp.

The agency also said it downgrade its subsidiaries, including Hancock Bank's long-term deposits to A3 from A1 and short-term rating to prime-2 from prime-1.

The outlook is stable.

As a result of the acquisition, Moody's also said it confirmed Whitney's long-term issuer rating at Baa1 and Whitney National Bank's long-term deposits rating at A3 and short-term rating at prime-2.

The outlook is stable.

The actions conclude a review that began when the acquisition was announced in December 2010, Moody's said.

Moody's said the magnitude of the downgrade of Hancock's ratings reflects the challenges inherent in acquiring a comparatively large and troubled bank.

In Whitney, Hancock is buying a bank that lost money in each of the past two years, has weak pre-provision earnings power and continues to have a high level of non-performing assets, the agency said.

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