Moody's cuts BancorpSouth

Moody's Investors Service said it downgraded BancorpSouth Inc.'s issuer rating to Baa1 from A3, along with BancorpSouth Bank's bank financial strength rating to C from C+, long-term deposits to A3 from A2 and short-term rating to Prime-2 from Prime-1 and BancorpSouth Capital Trust I's preferred stock to Baa3 from Baa2.

The downgrade concludes a review for possible downgrade that began in April. The outlook is negative.

The downgrade reflects the company's control failure in loan administration, which accentuates the company's credit risk given its sizable concentration in commercial real estate, Moody's said.

The agency noted that BancorpSouth's commercial real estate concentration is significant.

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