Moody's cuts Webster Financial

Moody's Investors Service said it downgraded Webster Financial Corp.'s senior debt to Baa1 from A3, along with its lead bank subsidiary, Webster Bank, NAs bank financial strength rating to C from C+, long- term deposits rating to A3 from A2 and short-term deposits rating to prime-2 from prime-1. This concludes a review for possible downgrade that began in Nov..

The outlook is stable.

The downgrade resulted from Webster's protracted weakness in profitability and asset quality, Moody's said.

Webster's core profitability has been weighed down by a lower net interest margin and higher expenses, combined with elevated credit costs, the agency said.

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