Moody’s upgrades Synovus, debt

Moody's Investors Service said it upgraded Synovus Financial Corp.’s senior unsecured debt to Ba1 from Ba2.

The agency also upgraded bank subsidiary Synovus Bank’s long-term deposit rating to Baa1 from Baa2, issuer rating to Ba1 from Ba2 and standalone baseline credit assessment to baa3 from ba1. The short-term deposit rating of Prime-2 was affirmed. The bank's counterparty risk assessment was upgraded to Baa2(cr)/Prime-2(cr) from Baa3(cr)/Prime-3(cr).

Moody’s said the upgrade reflects its expectations that Synovus' financial performance will be more consistent and comparable to other U.S. banks in its new rating peer group. This is based on Synovus' reduced commercial real estate concentration and improved risk governance.

These changes have led to improved performance, particularly in asset quality and profitability, where Synovus' metrics are similar to its peers.

In addition, Synovus has grown its capital ratios and closed the gap with peers, the agency said. Its improved balance sheet strength remains underpinned by its historically strong liquidity profile.

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