Fitch Downgrades Synovus Financial Corp's Ratings; Outlook Negative

The rating action largely reflects the prospect of prolonged credit stress at Synovus, which will continue to hamper the company's performance and weigh on its financial condition. The preponderance of credit concerns remain in SNV's residential construction, development, and land loan portfolios, the majority of which reside in the greater Atlanta area, as well as the west coast and panhandle of Florida. Management has remained focused on its disposition strategy and has been utilizing auctions to work through its problem assets. However, given the continued uncertainty in these regions and the size of SNV's exposure to them, Fitch has maintained a Negative Outlook on the company's ratings, as greater credit stress is anticipated. If credit deterioration becomes more pronounced than expected, SNV's ratings could be downgraded further. However, should the expected credit deterioration not materialize or the effects have only a limited impact on the company's earnings performance or capital position, Fitch would likely revise the Rating Outlook to Stable.

SNV's ratings continue to be supported by its healthy capital position, good liquidity, and a solid funding base. Further, Fitch views the company's recent actions to preserve and enhance its capital position as both positive and prudent given its credit exposures. Fitch also acknowledges the company's diligence in replenishing reserve levels, which have shown steady improvement over the past several quarters, as well as its efforts to enhance its operational efficiency.

Fitch has taken the following rating actions on SNV and its subsidiaries with a Negative Outlook:

Synovus Financial Corp.

--Long-term IDR downgraded to 'A-' from 'A'

--Subordinated Debt downgraded to 'BBB+' from 'A-'

--Short-term IDR affirmed at 'F1'

--Individual downgraded to 'B/C' from 'B'

--Support affirmed at '5'

--Support Floor affirmed 'NF'

Columbus Bank & Trust

--Long-term IDR downgraded to 'A-' from 'A'

--Long-term Deposits downgraded to 'A' from 'A+'

--Short-term IDR affirmed at 'F1'

--Short-term Deposits affirmed at 'F1'

--Individual downgraded to 'B/C' from 'B'

--Support affirmed at '5'

--Support Floor affirmed at 'NF'

Athens First Bank & Trust Co.

--Long-term IDR downgraded to 'A-' from 'A'

--Long-term Deposits downgraded to 'A' from 'A+'

--Short-term IDR affirmed at 'F1'

--Individual downgraded to 'B/C' from 'B'

--Support affirmed at '5'

--Support Floor affirmed at 'NF'

Bank of Coweta

--Long-term IDR downgraded to 'A-' from 'A'

--Long-term Deposits downgraded to 'A' from 'A+'

--Short-term IDR affirmed at 'F1'

--Short-term Deposits affirmed at 'F1'

--Individual downgraded to 'B/C' from 'B'

--Support affirmed at '5'

--Support Floor affirmed at 'NF'

Bank of Nashville

--Long-term IDR downgraded to 'A-' from 'A'

--Long-term Deposits downgraded to 'A' from 'A+'

--Short-term IDR affirmed at 'F1'

--Individual downgraded to 'B/C' from 'B'

--Support affirmed at '5'

--Support Floor affirmed at 'NF'

Bank of North Georgia

--Long-term IDR downgraded to 'A-' from 'A'

--Long-term Deposits downgraded to 'A' from 'A+'

--Short-term IDR affirmed at 'F1'

--Individual downgraded to 'B/C' from 'B'

--Support affirmed at '5'

--Support Floor affirmed at 'NF'

Bank of Pensacola

--Long-term IDR downgraded to 'A-' from 'A'

--Long-term Deposits downgraded to 'A' from 'A+'

--Short-term IDR affirmed at 'F1'

--Individual downgraded to 'B/C' from 'B'

--Support affirmed at '5'

--Support Floor affirmed at 'NF'

Bank of Tuscaloosa

--Long-term IDR downgraded to 'A-' from 'A'

--Long-term Deposits downgraded to 'A' from 'A+'

--Short-term IDR affirmed at 'F1'

--Individual downgraded to 'B/C' from 'B'

--Support affirmed at '5'

--Support Floor affirmed at 'NF'

CB&T Bank of Middle Georgia

--Long-term IDR downgraded to 'A-' from 'A'

--Long-term Deposits downgraded to 'A' from 'A+'

--Short-term IDR affirmed at 'F1'

--Individual downgraded to 'B/C' from 'B'

--Support affirmed at '5'

--Support Floor affirmed at 'NF'

Citizens Bank & Trust of West Georgia

--Long-term IDR downgraded to 'A-' from 'A'

--Long-term Deposits downgraded to 'A' from 'A+'

--Short-term IDR affirmed at 'F1'

--Individual downgraded to 'B/C' from 'B'

--Support affirmed at '5'

--Support Floor affirmed at 'NF'

Citizens First Bank

--Long-term IDR downgraded to 'A-' from 'A'

--Long-term Deposits downgraded to 'A' from 'A+'

--Short-term IDR affirmed at 'F1'

--Individual downgraded to 'B/C' from 'B'

--Support affirmed at '5'

--Support Floor affirmed at 'NF'

Coastal Bank of Georgia

--Long-term IDR downgraded to 'A-' from 'A'

--Long-term Deposits downgraded to 'A' from 'A+'

--Short-term IDR affirmed at 'F1'

--Short-term Deposits affirmed 'F1'

--Individual downgraded to 'B/C' from 'B'

--Support affirmed at '5'

--Support Floor affirmed at 'NF'

Cohutta Banking Company

--Long-term IDR downgraded to 'A-' from 'A'

--Long-term Deposits downgraded to 'A' from 'A+'

--Short-term IDR affirmed at 'F1'

--Short-term Deposits affirmed 'F1'

--Individual downgraded to 'B/C' from 'B'

--Support affirmed at '5'

--Support Floor affirmed at 'NF'

Commercial Bank

--Long-term IDR downgraded to 'A-' from 'A'

--Long-term Deposits downgraded to 'A' from 'A+'

--Short-term IDR affirmed at 'F1'

--Short-term Deposits affirmed 'F1'

--Individual downgraded to 'B/C' from 'B'

--Support affirmed at '5'

--Support Floor affirmed at 'NF'

Commercial Bank & Trust Co.

--Long-term IDR downgraded to 'A-' from 'A'

--Long-term Deposits downgraded to 'A' from 'A+'

--Short-term IDR affirmed at 'F1'

--Short-term Deposits affirmed 'F1'

--Individual downgraded to 'B/C' from 'B'

--Support affirmed at '5'

--Support Floor affirmed at 'NF'

Community Bank & Trust of Southeast Alabama

--Long-term IDR downgraded to 'A-' from 'A'

--Long-term Deposits downgraded to 'A' from 'A+'

--Short-term IDR affirmed at 'F1'

--Individual downgraded to 'B/C' from 'B'

--Support affirmed at '5'

--Support Floor affirmed at 'NF'

First Commercial Bank

--Long-term IDR downgraded to 'A-' from 'A'

--Long-term Deposits downgraded to 'A' from 'A+'

--Short-term IDR affirmed at 'F1'

--Short-term Deposits affirmed 'F1'

--Individual downgraded to 'B/C' from 'B'

--Support affirmed at '5'

--Support Floor affirmed at 'NF'

First Commercial Bank of Huntsville

--Long-term IDR downgraded to 'A-' from 'A'

--Long-term Deposits downgraded to 'A' from 'A+'

--Short-term IDR affirmed at 'F1'

--Individual downgraded to 'B/C' from 'B'

--Support affirmed at '5'

--Support Floor affirmed at 'NF'

First Community Bank of Tifton

--Long-term IDR downgraded to 'A-' from 'A'

--Long-term Deposits downgraded to 'A' from 'A+'

--Short-term IDR affirmed at 'F1'

--Individual downgraded to 'B/C' from 'B'

--Support affirmed at '5'

--Support Floor affirmed at 'NF'

First National Bank of Jasper

--Long-term IDR downgraded to 'A-' from 'A'

--Long-term Deposits downgraded to 'A' from 'A+'

--Short-term IDR affirmed at 'F1'

--Short-term Deposits affirmed 'F1'

--Individual downgraded to 'B/C' from 'B'

--Support affirmed at '5'

--Support Floor affirmed at 'NF'

First State Bank and Trust Company of Valdosta

--Long-term IDR downgraded to 'A-' from 'A'

--Long-term Deposits downgraded to 'A' from 'A+'

--Short-term IDR affirmed at 'F1'

--Individual downgraded to 'B/C' from 'B'

--Support affirmed at '5'

--Support Floor affirmed at 'NF'

Georgia Bank & Trust

--Long-term IDR downgraded to 'A-' from 'A'

--Long-term Deposits downgraded to 'A' from 'A+'

--Short-term IDR affirmed at 'F1'

--Individual downgraded to 'B/C' from 'B'

--Support affirmed at '5'

--Support Floor affirmed at 'NF'

National Bank of South Carolina

--Long-term IDR downgraded to 'A-' from 'A'

--Long-term Deposits downgraded to 'A' from 'A+'

--Short-term IDR affirmed at 'F1'

--Short-term Deposits affirmed 'F1'

--Individual downgraded to 'B/C' from 'B'

--Support affirmed at '5'

--Support Floor affirmed at 'NF'

National Bank of Walton County

--Long-term IDR downgraded to 'A-' from 'A'

--Long-term Deposits downgraded to 'A' from 'A+'

--Short-term IDR affirmed at 'F1'

--Individual downgraded to 'B/C' from 'B'

--Support affirmed at '5'

--Support Floor affirmed at 'NF'

Sea Island Bank

--Long-term IDR downgraded to 'A-' from 'A'

--Long-term Deposits downgraded to 'A' from 'A+'

--Short-term IDR affirmed at 'F1'

--Short-term Deposits affirmed 'F1'

--Individual downgraded to 'B/C' from 'B'

--Support affirmed at '5'

--Support Floor affirmed at 'NF'

Security Bank & Trust Company of Albany

--Long-term IDR downgraded to 'A-' from 'A'

--Long-term Deposits downgraded to 'A' from 'A+'

-- Short-term IDR affirmed at 'F1'

-- Individual downgraded to 'B/C' from 'B'

--Support affirmed at '5'

--Support Floor affirmed at 'NF'

Sterling Bank

-- Long-term IDR downgraded to 'A-' from 'A'

--Long-term Deposits downgraded to 'A' from 'A+'

--Short-term IDR affirmed at 'F1'

--Short-term Deposits affirmed 'F1'

--Individual downgraded to 'B/C' from 'B'

--Support affirmed at '5'

--Support Floor affirmed at 'NF'

Sumter Bank & Trust Company

--Long-term IDR downgraded to 'A-' from 'A'

--Long-term Deposits downgraded to 'A' from 'A+'

--Short-term IDR affirmed at 'F1'

--Individual downgraded to 'B/C' from 'B'

--Support affirmed at '5'

--Support Floor affirmed at 'NF'

Synovus Bank of Tampa

--Long-term IDR downgraded to 'A-' from 'A'

--Long-term Deposits downgraded to 'A' from 'A+'

--Short-term IDR affirmed at 'F1'

--Individual downgraded to 'B/C' from 'B'

--Support affirmed at '5'

--Support Floor affirmed at 'NF'

Tallahassee State Bank

--Long-term IDR downgraded to 'A-' from 'A'

--Long-term Deposits downgraded to 'A' from 'A+'

--Short-term IDR affirmed at 'F1'

--Individual downgraded to 'B/C' from 'B'

--Support affirmed at '5'

--Support Floor affirmed at 'NF'

Trust One Bank

--Long-term IDR downgraded to 'A-' from 'A'

--Long-term Deposits downgraded to 'A' from 'A+'

--Short-term IDR affirmed at 'F1'

--Individual downgraded to 'B/C' from 'B'

--Support affirmed at '5'

--Support Floor affirmed at 'NF'

Vanguard Bank & Trust Company

--Long-term IDR downgraded to 'A-' from 'A'

--Long-term Deposits downgraded to 'A' from 'A+'

--Short-term IDR affirmed at 'F1'

--Individual downgraded to 'B/C' from 'B'

--Support affirmed at '5'

--Support Floor affirmed at 'NF'

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.

SOURCE: Fitch Ratings

Fitch Ratings, New York Amy R. Shanle, +1-212-908-0821 Kenneth Ritz, +1-212-908-0368 Cindy Stoller, +1-212-908-0526 (Media Relations)