S&P alters BancorpSouth Bank view to stable

S&P said it revised its outlook on BancorpSouth Bank to positive from stable and affirmed the BBB rating.

The revision follows the bank completing its merger with Cadence Bancorporation on Friday, the agency said. BankcorpSouth Bank will change its name to Cadence Bancorporation.

“We revised our outlook to positive from stable on our ratings to reflect, the potential for enhanced scale, stronger market position, and increased geographic diversity that we believe BancorpSouth could achieve following its integration of the merger with Cadence,” S&P said in a press release.

“While the bank estimates that its noninterest revenue contribution will modestly decline from historical levels of 30% or higher, we continue to view the projected 26% contribution as solid and roughly comparable to higher-rated peers, bolstered by a suite of fee income products and services across the combined bank, like insurance, mortgage banking, wealth management, and treasury management services,” the agency added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.