Fitch cuts Trustmark to B/C

Fitch Ratings said it downgraded the individual ratings of Trustmark Corp. and Trustmark National Bank to B/C from B and affirmed their remaining ratings, including the A- long-term issuer default ratings, F1 short-term issuer default ratings, 5 support ratings, "No Floor" support floors and Trustmark National Bank's BBB+ subordinated debt rating.

The outlook is stable.

The downgrade follows Trustmark's recent announcement of its intent to acquire Cadence Financial Corp. Over the near term, the agency regards the transaction as neutral to the rating. Fitch said this balances the solid strategic and economic rationales for this deal against the increased burden of addressing Cadence's loan portfolio.

The ratings continue to reflect Trustmark's strong capital positions, solid core earnings strength and good franchise, the agency said.

These strengths are tempered by Fitch's view that Trustmark's asset quality has shown modest weakening as evidenced by a higher non-performing asset ratio and lower reserves relative to non-performing loans compared to similarly rated institutions, and the agency said this is the principal factor in lowering the individual rating to B/C.

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