Fitch pares PacWest Bancorp

Fitch Ratings said it downgraded the long-term issuer default ratings of PacWest Bancorp (PACW) and its bank subsidiary, Pacific Western Bank, to BBB- from BBB, reflecting the company's rapid, growth-driven deterioration in its common equity tier 1 (CET1) ratio to 8.2% at 2Q22 (10.4% at 2Q21).

“The company's IDRs, VR and senior debt ratings reflect PACW's record of strong asset quality, low credit losses, consistent financial performance, and stable deposit base, balanced by its relatively spread-reliant business model, commercial real estate (CRE) concentration and elevated rate of loan growth, which has contributed to deterioration in its capital position,” Fitch said in a press release.

The outlook is stable.

© 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.