S&P Global Ratings on March 15 downgraded Trustmark Corp.'s long-term issuer credit rating to BBB from BBB+.
Subsidiary Trustmark National Bank's rating was lowered to BBB+ from A-.
The rating agency attributed the downgrade to "potential vulnerabilities" to the Jackson, Miss.-based company's stability, including "large construction, land development, and other land loan exposures ... somewhat lower capital ratios [and] material geographic concentrations."
That said, S&P expects Trustmark to be profitable over the next few years, while rebuilding capital ratios. Any loan quality deterioration is likely to be "manageable."
S&P affirmed both the company's and the bank's short-term ratings of A-2. The ratings outlook is "stable."
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings, a separately managed division of S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings. The original S&P Global Ratings documents referred to in this news brief can be found here.
