S&P Global Ratings on July 7 affirmed the BBB- long-termissuer credit rating for BancorpSouth Inc. and the BBB long-term and A-2short-term issuer credit ratings for unit BancorpSouth Bank.

S&P expects that even as the company expands in newmarkets and products, it will maintain its strong credit measures and superiorcapital levels over the next several years. In addition, the analyst believesthat the company's risk-adjusted capital ratio will remain above 10% in theupcoming two years, although it will probably decline as a result of itsplanned acquisitions, ongoing loan growth, and increased dividends and sharerepurchases.

The rating agency revised its outlook to positive fromstable. Among other factors, the outlook reflects S&P's belief that thecompany will now be able to operate without the strategic constraints thatexisted over the last several years because of regulatory and legal . It also reflects the view thatthe company will keep showing good earnings, strong capital ratios and healthyasset quality.

S&P Global Ratingsand S&P Global Market Intelligence are owned by S&P Global Inc.