S&P rates BancorpSouth Bank notes BBB-, preferreds BB

S&P said it assigned its BBB- rating on BancorpSouth Bank’s offering of $300 million of 4.125% fixed-to-floating rate subordinated notes due Nov. 20, 2029. The rating on the subordinated notes is linked to S&P’s issuer credit rating on BancorpSouth Bank, which is BBB.

“The rating on the notes is one notch lower than the long-term ICR on the bank, reflecting the issue’s subordination to the company’s existing and future senior debt,” said S&P in a press release.

S&P also assigned its BB rating on the bank’s offering of $150 million 5.5% series A noncumulative perpetual preferred stock, par value $0.01 per share.

Like the notes, the rating on the preferred is linked to the ICR on BancorpSouth Bank and is three notches lower than the ICR, reflecting the issue’s subordination to the company’s senior debt, and the standard risk of dividend nonpayment, the agency said.

Proceeds will be used for general corporate purposes.

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