Fitch affirms Synovus

Fitch Ratings said it affirmed the long-term issuer default ratings of Synovus Financial Corp. and its bank subsidiary Synovus Bank at BB-. Fitch affirmed Synovus Financial's preferred stock at B-, subordinated debt at B and short-term issuer default rating at B.

The outlook is negative.

The affirmation reflects that asset quality, although still challenged, has begun to stabilize, the agency said. The improving credit trends as well as the efforts by the company to reduce risk in the portfolio and the significant writedowns already taken should make future losses more manageable.

The affirmation also considers that the ratings are underpinned by a relatively solid funding base, derived primarily from a strong deposit franchise in its southeastern U.S. markets, the agency added.

The negative outlook reflects that Synovus Financial's loan book still contains a great deal of potential credit risk, Fitch noted.

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