Fitch ups Whitney Bank, rates Hancock BBB+

Fitch Ratings said it upgraded Whitney Bank's long-term issuer default rating to BBB+ in the wake of the company's June 2011 acquisition by Hancock Holding Co.

Also upgraded included Whitney Bank's long-term deposits rating to A- from BBB+, short-term deposits rating to F1 from F2, subordinated debt rating to BBB from BBB- and viability rating to BBB+ from BBB.

Fitch also said it assigned to Hancock Holding a long-term issuer default rating of BBB+, short-term issuer default rating of F2 and viability rating of BBB+.

The agency also said it assigned to Hancock Bank a long-term deposits rating of A-, short-term deposits rating of F1, long-term issuer default rating of BBB+, short-term issuer default rating of F2 and viability rating of BBB+.

The agency also affirmed Whitney Bank's short-term issuer default rating at F2.

The outlook is stable.

The upgrade is largely predicated on the closing of its sale to Hancock, Fitch said.

This deal helps to bolster Whitney Bank's capital and liquidity position, as it is now part of a larger and enhanced overall franchise, the agency said.

In addition, Whitney Bank wrote down the bulk of its problem credits leading up to the closing of the acquisition, which should buoy the bank's results over the medium term, Fitch added.

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