Fitch Downgrades Synovus Financial Corporation's L-T IDR to 'BB-'

Today's rating actions reflects Fitch's revised loss expectations for SNV's portfolio, given the company's significant exposure to troubled regions of the Southeast. Fitch believes prolonged credit stress will continue to weigh heavily on the company's financial condition. Credit concerns continue to stem from 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 of Florida. Although SNV's management has remained focused on its disposition strategy of problem assets through both the utilization of auctions and the formation of its special asset management group, Fitch believes the impact of heightened credit costs will continue to hamper SNV's performance and will threaten its capital position.

The Negative Outlook reflects both the possibility of credit deterioration becoming more pronounced and the weakening of some of SNV's other fundamental strengths, such as its core funding base. SNV's ratings continue to be supported by its current capital position, which is viewed as necessary given its credit exposure. The company's liquidity position, sound funding base, and augmented reserve levels, provide additional ratings support. However, these fundamental strengths could be pressured as the company endures increased credit stress.

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

Synovus Financial Corp.

--Long-term IDR downgraded to 'BB-' from 'BBB';

--Subordinated Debt downgraded to 'B' from 'BBB-';

--Preferred Stock downgraded to 'B-' from 'BB+';

--Short-term IDR downgraded to 'B' from 'F2';

--Individual downgraded to 'D' from 'C';

--Support affirmed at '5';

--Support Floor affirmed 'NF'.

Columbus Bank & Trust

--Long-term IDR downgraded to 'BB-' from 'BBB';

--Long-term Deposits downgraded to 'BB' from 'BBB+';

--Short-term IDR downgraded to 'B' from 'F2';

--Short-term Deposits downgraded to 'B' from 'F2';

--Individual downgraded to 'D' from 'C';

--Support affirmed at '5';

--Support Floor affirmed at 'NF'.

Athens First Bank & Trust Co.

--Long-term IDR downgraded to 'BB-' from 'BBB';

--Long-term Deposits downgraded to 'BB' from 'BBB+';

--Short-term IDR downgraded to 'B' from 'F2';

--Individual downgraded to 'D' from 'C';

--Support affirmed at '5';

--Support Floor affirmed at 'NF'.

Bank of Coweta

--Long-term IDR downgraded to 'BB-' from 'BBB';

--Long-term Deposits downgraded to 'BB' from 'BBB+';

--Short-term IDR downgraded to 'B' from 'F2';

--Short-term Deposits downgraded to 'B' from 'F2';

--Individual downgraded to 'D' from 'C';

--Support affirmed at '5';

--Support Floor affirmed at 'NF'.

Bank of Nashville

--Long-term IDR downgraded to 'BB-' from 'BBB';

--Long-term Deposits downgraded to 'BB' from 'BBB+';

--Short-term IDR downgraded to 'B' from 'F2';

--Individual downgraded to 'D' from 'C';

--Support affirmed at '5';

--Support Floor affirmed at 'NF'.

Bank of North Georgia

--Long-term IDR downgraded to 'BB-' from 'BBB';

--Long-term Deposits downgraded to 'BB' from 'BBB+';

--Short-term IDR downgraded to 'B' from 'F2';

--Individual downgraded to 'D' from 'C';

--Support affirmed at '5';

--Support Floor affirmed at 'NF'.

Bank of Pensacola

--Long-term IDR downgraded to 'BB-' from 'BBB';

--Long-term Deposits downgraded to 'BB' from 'BBB+';

--Short-term IDR downgraded to 'B' from 'F2';

--Individual downgraded to 'D' from 'C';

--Support affirmed at '5';

--Support Floor affirmed at 'NF'.

Bank of Tuscaloosa

--Long-term IDR downgraded to 'BB-' from 'BBB';

--Long-term Deposits downgraded to 'BB' from 'BBB+';

--Short-term IDR downgraded to 'B' from 'F2';

--Individual downgraded to 'D' from 'C';

--Support affirmed at '5';

--Support Floor affirmed at 'NF'.

CB&T Bank of Middle Georgia

--Long-term IDR downgraded to 'BB-' from 'BBB';

--Long-term Deposits downgraded to 'BB' from 'BBB+';

--Short-term IDR downgraded to 'B' from 'F2';

--Individual downgraded to 'D' from 'C';

--Support affirmed at '5';

--Support Floor affirmed at 'NF'.

Citizens Bank & Trust of West Georgia

--Long-term IDR downgraded to 'BB-' from 'BBB';

--Long-term Deposits downgraded to 'BB' from 'BBB+';

--Short-term IDR downgraded to 'B' from 'F2';

--Individual downgraded to 'D' from 'C';

--Support affirmed at '5';

--Support Floor affirmed at 'NF'.

Citizens First Bank

--Long-term IDR downgraded to 'BB-' from 'BBB';

--Long-term Deposits downgraded to 'BB' from 'BBB+';

--Short-term IDR downgraded to 'B' from 'F2';

--Individual downgraded to 'D' from 'C';

--Support affirmed at '5';

--Support Floor affirmed at 'NF'.

Coastal Bank of Georgia

--Long-term IDR downgraded to 'BB-' from 'BBB';

--Long-term Deposits downgraded to 'BB' from 'BBB+';

--Short-term IDR downgraded to 'B' from 'F2';

--Short-term Deposits downgraded to 'B' from 'F2';

--Individual downgraded to 'D' from 'C';

--Support affirmed at '5';

--Support Floor affirmed at 'NF'.

Cohutta Banking Company

--Long-term IDR downgraded to 'BB-' from 'BBB';

--Long-term Deposits downgraded to 'BB' from 'BBB+';

--Short-term IDR downgraded to 'B' from 'F2';

--Short-term Deposits downgraded to 'B' from 'F2';

--Individual downgraded to 'D' from 'C';

--Support affirmed at '5';

--Support Floor affirmed at 'NF'.

Commercial Bank

--Long-term IDR downgraded to 'BB-' from 'BBB';

--Long-term Deposits downgraded to 'BB' from 'BBB+';

--Short-term IDR downgraded to 'B' from 'F2';

--Short-term Deposits downgraded to 'B' from 'F2';

--Individual downgraded to 'D' from 'C';

--Support affirmed at '5';

--Support Floor affirmed at 'NF'.

Commercial Bank & Trust Co.

--Long-term IDR downgraded to 'BB-' from 'BBB';

--Long-term Deposits downgraded to 'BB' from 'BBB+';

--Short-term IDR downgraded to 'B' from 'F2';

--Short-term Deposits downgraded to 'B' from 'F2';

--Individual downgraded to 'D' from 'C';

--Support affirmed at '5';

--Support Floor affirmed at 'NF'.

Community Bank & Trust of Southeast Alabama

--Long-term IDR downgraded to 'BB-' from 'BBB';

--Long-term Deposits downgraded to 'BB' from 'BBB+';

--Short-term IDR downgraded to 'B' from 'F2';

--Individual downgraded to 'D' from 'C';

--Support affirmed at '5';

--Support Floor affirmed at 'NF'.

First Commercial Bank

--Long-term IDR downgraded to 'BB-' from 'BBB';

--Long-term Deposits downgraded to 'BB' from 'BBB+';

--Short-term IDR downgraded to 'B' from 'F2';

--Short-term Deposits downgraded to 'B' from 'F2';

--Individual downgraded to 'D' from 'C';

--Support affirmed at '5';

--Support Floor affirmed at 'NF'.

First Commercial Bank of Huntsville

--Long-term IDR downgraded to 'BB-' from 'BBB';

--Long-term Deposits downgraded to 'BB' from 'BBB+';

--Short-term IDR downgraded to 'B' from 'F2';

--Individual downgraded to 'D' from 'C';

--Support affirmed at '5';

--Support Floor affirmed at 'NF'.

First Community Bank of Tifton

--Long-term IDR downgraded to 'BB-' from 'BBB';

--Long-term Deposits downgraded to 'BB' from 'BBB+';

--Short-term IDR downgraded to 'B' from 'F2';

--Individual downgraded to 'D' from 'C';

--Support affirmed at '5';

--Support Floor affirmed at 'NF'.

First National Bank of Jasper

--Long-term IDR downgraded to 'BB-' from 'BBB';

--Long-term Deposits downgraded to 'BB' from 'BBB+';

--Short-term IDR downgraded to 'B' from 'F2';

--Short-term Deposits downgraded to 'B' from 'F2';

--Individual downgraded to 'D' from 'C';

--Support affirmed at '5';

--Support Floor affirmed at 'NF'.

First State Bank and Trust Company of Valdosta

--Long-term IDR downgraded to 'BB-' from 'BBB';

--Long-term Deposits downgraded to 'BB' from 'BBB+';

--Short-term IDR downgraded to 'B' from 'F2';

--Individual downgraded to 'D' from 'C';

--Support affirmed at '5';

--Support Floor affirmed at 'NF'.

Georgia Bank & Trust

--Long-term IDR downgraded to 'BB-' from 'BBB';

--Long-term Deposits downgraded to 'BB' from 'BBB+';

--Short-term IDR downgraded to 'B' from 'F2';

--Individual downgraded to 'D' from 'C';

--Support affirmed at '5';

--Support Floor affirmed at 'NF'.

National Bank of South Carolina

--Long-term IDR downgraded to 'BB-' from 'BBB';

--Long-term Deposits downgraded to 'BB' from 'BBB+';

--Short-term IDR downgraded to 'B' from 'F2';

--Short-term Deposits downgraded to 'B' from 'F2';

--Individual downgraded to 'D' from 'C';

--Support affirmed at '5';

--Support Floor affirmed at 'NF'.

National Bank of Walton County

--Long-term IDR downgraded to 'BB-' from 'BBB';

--Long-term Deposits downgraded to 'BB' from 'BBB+';

--Short-term IDR downgraded to 'B' from 'F2';

--Individual downgraded to 'D' from 'C';

--Support affirmed at '5';

--Support Floor affirmed at 'NF'.

Sea Island Bank

--Long-term IDR downgraded to 'BB-' from 'BBB';

--Long-term Deposits downgraded to 'BB' from 'BBB+';

--Short-term IDR downgraded to 'B' from 'F2';

--Short-term Deposits downgraded to 'B' from 'F2';

--Individual downgraded to 'D' from 'C';

--Support affirmed at '5';

--Support Floor affirmed at 'NF'.

Security Bank & Trust Company of Albany

--Long-term IDR downgraded to 'BB-' from 'BBB';

--Long-term Deposits downgraded to 'BB' from 'BBB+';

--Short-term IDR downgraded to 'B' from 'F2';

--Individual downgraded to 'D' from 'C';

--Support affirmed at '5';

--Support Floor affirmed at 'NF'.

Sterling Bank

--Long-term IDR downgraded to 'BB-' from 'BBB';

--Long-term Deposits downgraded to 'BB' from 'BBB+';

--Short-term IDR downgraded to 'B' from 'F2';

--Short-term Deposits downgraded to 'B' from 'F2';

--Individual downgraded to 'D' from 'C';

--Support affirmed at '5';

--Support Floor affirmed at 'NF'.

Sumter Bank & Trust Company

--Long-term IDR downgraded to 'BB-' from 'BBB';

--Long-term Deposits downgraded to 'BB' from 'BBB+';

--Short-term IDR downgraded to 'B' from 'F2';

--Individual downgraded to 'D' from 'C';

--Support affirmed at '5';

--Support Floor affirmed at 'NF'.

Synovus Bank of Tampa

--Long-term IDR downgraded to 'BB-' from 'BBB';

--Long-term Deposits downgraded to 'BB' from 'BBB+';

--Short-term IDR downgraded to 'B' from 'F2';

--Individual downgraded to 'D' from 'C';

--Support affirmed at '5';

--Support Floor affirmed at 'NF'.

Tallahassee State Bank

--Long-term IDR downgraded to 'BB-' from 'BBB';

--Long-term Deposits downgraded to 'BB' from 'BBB+';

--Short-term IDR downgraded to 'B' from 'F2';

--Individual downgraded to 'D' from 'C';

--Support affirmed at '5';

--Support Floor affirmed at 'NF'.

Trust One Bank

--Long-term IDR downgraded to 'BB-' from 'BBB';

--Long-term Deposits downgraded to 'BB' from 'BBB+';

--Short-term IDR downgraded to 'B' from 'F2';

--Individual downgraded to 'D' from 'C';

--Support affirmed at '5';

--Support Floor affirmed at 'NF'.

Vanguard Bank & Trust Company

--Long-term IDR downgraded to 'BB-' from 'BBB';

--Long-term Deposits downgraded to 'BB' from 'BBB+';

--Short-term IDR downgraded to 'B' from 'F2';

--Individual downgraded to 'D' from 'C';

--Support affirmed at '5';

--Support Floor affirmed at 'NF'.

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SOURCE: Fitch Ratings

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