Moody's puts some U.S. bank preferreds on review

Moody's Investors Service said it placed on review for possible downgrade the ratings on hybrid securities of four U.S. bank holding companies, including Citigroup Inc.'s Baa3 trust preferred securities and Ba1 Eggs Upper Tier II notes, Fifth Third Bancorp's Baa3 preferred stock and Baa2 trust preferreds, KeyCorp's Baa3 preferreds and Baa2 trust preferreds, SunTrust Banks, Inc.'s Ba2 preferreds and Baa2 trust preferreds and SunTrust Real Estate Investment Corp.'s Baa3 REIT preferred stock.

Moody's added that its ratings on Regions Financial Corp. are currently on review for possible downgrade, and the Baa1 rating on Region's trust preferreds will be reviewed in conjunction with the four other issuers' hybrid securities.

The agency said the reviews reflect its opinion that the probability of a missed dividend or interest payment on these securities has increased because these companies must raise capital in response to the outcome of the U.S. government's stress test.

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